Some companies run at an extremely narrow margin. For example the margin for grocery stores is reportedly 1%. If you changed the tax system to tax gross revenues, now those stores would need to dramatically raise prices to accommodate.

It's not an easy problem.

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BrandoElFollito 4 hours ago | parent [-]

It all depends on the tax level. If today they are texted at, say, 20%, this could be a 5% on gross revenue (or whatever), and indexed on the revenue (like for humans).

I also run on narrow margins, and nobody cares.

	▲	drdec 3 hours ago \| parent [-]
		I am saying there are unintended consequences to such changes. If all the grocery stores all at once raised prices 5%, your margins might turn negative. And most of your neighbors.