Topics:
February 14, 2023
Should a Margins Tax Replace State’s B&O?
- No tax owed or tax returns required for businesses with gross receipts up to $500,000.
- All businesses may elect to take a flat $1 million deduction and pay tax on any revenue above that amount. (This means that businesses earning $1 million or less would not pay the tax, although a tax return would be still need to be filed.)
- Instead of the $1 million deduction, businesses could choose any one of the following deductions:– A standard 30% deduction. Tax would be due on the remaining 70% of gross revenue. — Deduct the cost of goods sold. Tax would apply to the remainder. — Deduct compensation costs, capped at $400,000 per employee. Tax would apply to the remainder.
- Firms earning less than $5 million could instead elect to file and pay an “EZ rate” of 1.75% of gross with no other deductions.

State:
Get to know NFIB
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
Related Articles

June 12, 2025
Texas Small Business Owners Thank Governor Abbott for Signature…
The measure now goes before Texas voters in November.
Read More

June 12, 2025
SCOTUS Allows IRS “Self-Help” Debt Collection
NFIB is discouraged by today’s decision at the U.S. Supreme Court in the…
Read More

June 12, 2025
VIDEO: NFIB’s Holly Wade Discusses Small Business Optimism on…
NFIB Research Center Executive Director Holly Wade joined Kristen Scholer o…
Read More

June 12, 2025
Washington Comment on Slightly Improved Small Business Conditio…
Entrepreneurs facing massive federal tax increases
Read More