`==Gross receipts tax==  Hello, and welcome to Wikipedia! The modified Texas franchise tax was originally proposed to be a gross receipts tax. But the tax that was enacted is a margin tax, not a gross receipts tax. In substance, the margin tax is an income tax. Under no circumstances does the Texas margin tax cover 100% of gross receipts. Because there are various kinds of deductions available in computing the Texas margin tax, it is not a ``gross receipts`` tax.   `