New business tax reform

The city could reduce or phase out its controversial gross receipts tax on business without losing tax revenue over the long term, according to a new report by a Los Angeles business professor. Daily News.

The report is being circulated among city officials as the Business Tax Advisory Committee looks at a series of options to address a tax that has sparked substantial complaints from the business community.

BTAC is expected to make its recommendations on the tax by Aug. 3.

The draft report by Charles Swenson of the University of Southern California business school says the city can make dramatic cuts in the gross receipts tax - or even eliminate it. Businesses would move to Los Angeles while current firms would expand, according to the report, and the city would ultimately generate as much, if not more, tax revenue.