77.8 F
Cruz Bay
Friday, March 29, 2024
HomeNewsArchivesGross Receipts Tax Doesn't Affect Innovative Bottom Line

Gross Receipts Tax Doesn't Affect Innovative Bottom Line

Back Talk: Warren Mosler writes the Source to point out a question regarding Innovative Telephone's renewed EDC benefits.
Regarding your article, "Senators Looking at EDC Secret Deal With Innovative," when a utility is guaranteed a certain profit, the likes of gross receipts taxes very simply and very legally get passed on to our utility bills don't reduce the profits of the utility. Only the income tax rate matters, assuming the profit guarantee is only for pre tax profits.
Sincerely,
Warren Mosler
St. Croix

Print Friendly, PDF & Email
Keeping our community informed is our top priority.
If you have a news tip to share, please call or text us at 340-228-8784.

Support local + independent journalism in the U.S. Virgin Islands

Unlike many news organizations, we haven't put up a paywall – we want to keep our journalism as accessible as we can. Our independent journalism costs time, money and hard work to keep you informed, but we do it because we believe that it matters. We know that informed communities are empowered ones. If you appreciate our reporting and want to help make our future more secure, please consider donating.