Inside The “PLAN” Report
By: Doug Busselman, Executive Vice President
Having read through “Fool’s Gold – The Silver State’s Tax Structure: Inadequate and Inequitable”, the Progressive Leadership Alliance of Nevada (PLAN) proposal for rather significant tax increases the specifics of who gets to pay more and how much they should pay includes:
The PLAN proposal (according to the report) offers a variety of benefits that would come about, if adopted. Possibly chief of all good reasons is that those who have less, won’t be required to pay more than their fair share. We’re not sure of the details, but according to the PLAN report, “The poorest 20 percent of Nevadans pay taxes eight times higher than does, for instance, the mining industry.”
Economist Dr. Robert Ginsburg of Chicago’s Center on Work and Community Development carried out the background analysis of Nevada’s budget for PLAN and put it into a report entitled “Current Realities of Local/State Government Funding In Nevada: A Briefing To Identify Future Directions.”
The details of how this calculation was figured out, wasn’t shared, but the graph in PLAN’s report clearly shows that the bar for the category “Poorest 20%” is 8.3 and the “Wealthiest 1%” is only 2. The “Middle 60%" is 6.5.
The actual amounts of how much the “Poorest 20%” pay wasn’t spelled out, but it’s not about how much, its about “compared to”.
(Although we don’t know the exact numbers that entered this report -- But by way of an example...If person “A” pays $8.30 in taxes for the $100 of their income and person “Moneybags” pays $4,000 in taxes for their $200,000 of income – we can all clearly see that person “Moneybags” is taking significant advantage of the system and should be taken to task for this unfair approach to paying Nevada taxes.)
The conversation on the public policy decisions, to be made before things wrap up with the Nevada Legislature, needs to be complete with all sides weighing in with the ramifications of what will come from proposals and perspectives on all options.
It is also critical that there is a clear understanding of what others are throwing into the mix as well.
Having read through “Fool’s Gold – The Silver State’s Tax Structure: Inadequate and Inequitable”, the Progressive Leadership Alliance of Nevada (PLAN) proposal for rather significant tax increases the specifics of who gets to pay more and how much they should pay includes:
- Mining shouldn’t get to use the deductions they now have in the calculations for determining the Net Proceeds Tax – Pay $141 million more…
- A Business Profits Tax needs to be established (cause we’re one of the few states left without this type of tax). For those business enterprises that have profits over $50,000 – pay a 5 percent tax; for those with profits over $100,000 – pay a 7 percent tax – All total pay $194 million more in taxes from this area…
- The current Modified Business Tax needs to be increased from the current rate of 0.63 percent to 1.26 percent – Pay $279 million more…
- The Sales Tax credits on complimentary meals, recently decided by the state’s Supreme Court needs to be corrected and the state coffers need to get “their” money back – Pay $140 million more…
- The increase in the Hotel Room Tax, approved by voters to the advisory questions on the Washoe and Clark County ballots, should be 3 percent more to enhance K-12 education – Pay $125 million more.
- When that’s all said and done, the process of changing the state constitution should be embarked on to make it possible for those who have income over $200,000 to pay 3 percent on “unearned income taxes” for capital gains, interests and dividends – This bonus round increase is expected to yield $380 million (Although if more could be obtained by totally wiping out the current wording in the state’s constitution on income taxes – that would be an “untold” bonanza.)
The PLAN proposal (according to the report) offers a variety of benefits that would come about, if adopted. Possibly chief of all good reasons is that those who have less, won’t be required to pay more than their fair share. We’re not sure of the details, but according to the PLAN report, “The poorest 20 percent of Nevadans pay taxes eight times higher than does, for instance, the mining industry.”
Economist Dr. Robert Ginsburg of Chicago’s Center on Work and Community Development carried out the background analysis of Nevada’s budget for PLAN and put it into a report entitled “Current Realities of Local/State Government Funding In Nevada: A Briefing To Identify Future Directions.”
“Because of the state’s dependence on sales taxes…the poorest 20 percent of Nevadans pay 8.3 percent of their income in taxes, while the richest pay only 2 percent of their income.”
The details of how this calculation was figured out, wasn’t shared, but the graph in PLAN’s report clearly shows that the bar for the category “Poorest 20%” is 8.3 and the “Wealthiest 1%” is only 2. The “Middle 60%" is 6.5.
The actual amounts of how much the “Poorest 20%” pay wasn’t spelled out, but it’s not about how much, its about “compared to”.
(Although we don’t know the exact numbers that entered this report -- But by way of an example...If person “A” pays $8.30 in taxes for the $100 of their income and person “Moneybags” pays $4,000 in taxes for their $200,000 of income – we can all clearly see that person “Moneybags” is taking significant advantage of the system and should be taken to task for this unfair approach to paying Nevada taxes.)
The conversation on the public policy decisions, to be made before things wrap up with the Nevada Legislature, needs to be complete with all sides weighing in with the ramifications of what will come from proposals and perspectives on all options.
It is also critical that there is a clear understanding of what others are throwing into the mix as well.
Without question, those in political favor that have radical environmental leanings will seek ways to "harm" those that create products from raw materials. Raising taxes significantly on mining is simply a way to "punish" mining for the 'evil' that it does.
In combination with the Robin Hood idealism (tax the rich to give to the poor), these are both trademarks of the folks that think the solution to everything is to have the government take it over (socialism). Independence and free trade with minimal government involvement (taxing) is the enemy to the tax and control ideology.
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