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October 10, 2011

Should Los Angeles get rid of the business tax?

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Visiting Associate Clinical Professor, Jessica Levinson originally published this on KCET's "1st and Spring" blog.

Depending on your perspective Los Angeles' gross receipts tax on businesses either provides much needed revenue -- to the tune of $425 million per year -- or harms economic growth. Last week the City Council's Jobs and Business Development Committee suggested it is the latter. Specifically, the committee asked the city to study halting the tax for new businesses or eliminating it all together. The tax is essentially a tax on the revenue that businesses generate. The tax ranges from about $1 per $1,000 to $5 per $1,000.

Read the complete blog post.