If you want to kill the economy, go for it. Taxing a business based on its gross receipts is the dumbest thing I've ever heard.
Again why? I'm not trying to be argumentative (you actually might be on to something). But why is it so absurd for a business (which the law actually treats like a person) to pay taxes on its gross income, when it's so NOT absurd for you to pay taxes on your gross income?
Why? Do I seriously have to explain this?
A typical business is lucky if they have a 10% margin. That means their cash in exceeds their cash out by 10% - their profit on $1 in gross receipts is 10 cents. If you tax their gross proceeds even at the low low rate of 10% - you've taken all of their profit moron!, Not to mention other businesses with lower margins, like grocery stores with their razor thin margins.
And how does that 10% compare to YOUR margin? Is your household doing better than 10% a year after all of your expenses?