By the time a Delawarean is consuming a local brew at their favorite beer garden or restaurant, the GRT has hurt four small businesses.
DELAWARE ALMOST STANDS ALONE
Most states have recognized the destructive impact of imposing a gross receipts tax. Only five states still have GRTs, but of those five, Delaware’s is the most convoluted, with 54 different tax rates ranging from 0.0945% to 0.7468%.
These percentage rates look small, but their impact, as demonstrated above, is enormous. Details on the convoluted nature of applying this tax can be reviewed on Delaware’s Division of Revenue website.
Previous CRI analyses of Delaware’s economy have shown, using State and Federal data, that Delaware has been one of the worst economic performers in the Country for the last 20 years.
The GRT is one of the horrible policy ideas that has kept Delaware’s small businesses from growing or adding high-paying jobs.
There are over 17,000 businesses in Delaware with fewer than 20 employees. These firms have almost 70,000 employees making over $3.2B a year in payroll.
Delaware Legislators should allow these small businesses to thrive and add high-paying jobs. They should NOT tax them into failure with what is often the highest “equivalent” personal income taxes in the Nation – 204.07%!