This is compared to other taxes listed as separate line items on billings, are not directly included in the listed price of the item, and are not a factor in markup or profit on company sales.
A gross receipts tax has a pyramid effect that increases the actual taxable percentage as it passes through the product or service lifecycle.
This is easiest to discern in jurisdictions like Hawaii where businesses are allowed to visibly pass on gross excise tax to their customers.
[2] Economists have criticized gross receipts taxes for encouraging vertical integration among companies and imposing different effective tax rates across different industries.
In addition to these states, Texas has a "margin tax" on certain corporate net revenues.