SAMPLE LETTER OF OPPOSITION TO PUTTING A GROSS RECEIPTS TAX ON THE NOVEMBER BALLOT
[Date]
To: The Honorable Mayor and Members of the National City Council
From: [Your Name / Business Name], National City Business Owner
Subject: Strong Opposition to Proposed Gross Receipts Tax Ballot Measure
1. Timeline is Dangerously Rushed
Rushing a decision of this magnitude does disservice to the community.
· Lack of Engagement: A structural transformation of our business tax code requires several months of transparent workshops, impact studies, and collaborative stakeholder panels.
· Insufficient Review: The current timeline deprives the local business community of a meaningful opportunity to analyze how this tax will affect their operations, hiring capacity, and long-term viability.
2. Gross Receipts Taxes Penalize Low-Margin Businesses
Unlike a net income tax, a gross receipts tax is levied on total sales revenue, completely ignoring operating costs, overhead, and actual profitability.
· Taxing Losses: If a business has a rough year and loses money, it is still forced to pay the exact same tax on its gross volume.
· Pyramiding Effect: This tax structure compounds costs at every single level of production and supply chain, a flaw heavily criticized by non-partisan economic research groups across the country.
3. Businesses Shouldn't Bear the Sole Burden of City Deficits
The city should not put its budget problems entirely on the backs of the business community. Local enterprises are already navigating inflationary pressures, rising utility expenses, and regional supply chain costs. Layering a compounding, revenue-based tax system on top of these everyday challenges will drive investment away from National City and into neighboring areas.
4. Precedents from Other Jurisdictions Reveal Severe Flaws
5. My business will be impacted!
Thank you for your time, your leadership, and your serious consideration of our feedback.
Sincerely,
[Your Signature]
[Your Printed Name]
[Your Title]
[Your Business Name]
[National City Business Address]
