The Real Test Will Be In What Will Be Collected
By: Doug Busselman, Executive Vice President
It didn’t take all that long for the Nevada Senate to override the veto of the $781 million tax increase. There really wasn’t much question (as long as the deals that were made were finalized) that the override was going to be much of a question.
A big question however, will be the revenue that actually comes in from the tax increases that we now get to pay.
Over the past number of months, the poor performance of the economy has been causing tax income to miss expected marks. Going forward, at least from a short-term perspective, there aren’t many indicators that this is going to change.
We haven’t even gotten the tax bills that the Federal Government is going to need to send in order to pay for their exuberant spending binge since the Obama administration came to power – and we’re just wrapping up the greatest tax legislative session of Nevada’s history.
It will be worth paying attention to and keeping an organized tracking method in place to determine the actual revenue to be generated from the $781 million tax package that our state Senators determined to be necessary. It is also important that records be maintained on how the increased tax load will impact those who are expected to pay.
Will there be any correlation going forward to increases in the number of businesses with payrolls under the magic line of $250,000 per-year ($62,500 per-quarter)? It certainly is worth examining restructuring or possible amended planning to avoid the 1.17 percent payroll tax hit.
It will also be interesting to see how local school districts work through the process of dealing with teacher salaries and whether the 4 percent “cut” ever finds its way to the paychecks of those spending time in the classrooms around the state. How about the 1-day per month furlough program for state employees? Let’s keep track there too to see what “savings” might be achieved.
All in all it might seem that things will be settled now that the Legislature has set the course for where we are going. Whether we’re actually going to arrive is going to be worth paying attention to as well as how many might not survive the journey.
It didn’t take all that long for the Nevada Senate to override the veto of the $781 million tax increase. There really wasn’t much question (as long as the deals that were made were finalized) that the override was going to be much of a question.
A big question however, will be the revenue that actually comes in from the tax increases that we now get to pay.
Over the past number of months, the poor performance of the economy has been causing tax income to miss expected marks. Going forward, at least from a short-term perspective, there aren’t many indicators that this is going to change.
We haven’t even gotten the tax bills that the Federal Government is going to need to send in order to pay for their exuberant spending binge since the Obama administration came to power – and we’re just wrapping up the greatest tax legislative session of Nevada’s history.
It will be worth paying attention to and keeping an organized tracking method in place to determine the actual revenue to be generated from the $781 million tax package that our state Senators determined to be necessary. It is also important that records be maintained on how the increased tax load will impact those who are expected to pay.
Will there be any correlation going forward to increases in the number of businesses with payrolls under the magic line of $250,000 per-year ($62,500 per-quarter)? It certainly is worth examining restructuring or possible amended planning to avoid the 1.17 percent payroll tax hit.
It will also be interesting to see how local school districts work through the process of dealing with teacher salaries and whether the 4 percent “cut” ever finds its way to the paychecks of those spending time in the classrooms around the state. How about the 1-day per month furlough program for state employees? Let’s keep track there too to see what “savings” might be achieved.
All in all it might seem that things will be settled now that the Legislature has set the course for where we are going. Whether we’re actually going to arrive is going to be worth paying attention to as well as how many might not survive the journey.
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