Before you yawn and move on, this is a terrible hidden tax that can damage an economy. North Carolina has a state gross receipts tax for boxing matches and counties apply the tax to select businesses. But it is becoming more popular in other states and may apply to all businesses in North Carolina instead of the corporate income tax.

Listen to Prof. John Mikesell discuss the tax via the Tax Foundation blog. As Mikesell points out the corporate income tax is dying a much-deserved death, but the gross receipts tax is not a good substitute. The gross receipts tax applies a low rate to a broad base, but it is not a “sensible” base.