Moore said the gross receipts tax was initially levied as a temporary measure to increase revenue, but has since become permanent. It is also seen as a regressive tax, since it is not based on profits. Legislators last year reduced the gross receipts tax on the state's manufacturers, amid complaints that it was putting the state's two auto plants at a disadvantage when compared with their counterparts in other states. Rates differ for manufacturers. However, with a booming economy, many small businesses are now subject to the tax.
Businesspeople also object to the complexity and paperwork arising from the tax.
Interestingly enough, the State Chamber agenda did not mention a reduction in personal income taxes. The top income tax rate has been gradually reduced, but is still high when compared to many states. The State Chamber's Small Business Alliance did push for a personal income tax cut in its report. Moore said the Chamber would not object to a personal income tax cut, but recognized that revenues would be needed for other purposes. At the same time, however, the Chamber wants to see curbs on government spending.