Business Doesn’t Exist To Pay Taxes
By: Doug Busselman, Executive Vice President
As the Nevada Vision Stakeholders Group moves forward in the direction of developing goals for Nevada to pursue over the next 5, 10 and 20 year time-frames one of the key and more central assignments is in the area of economic diversification. This quest for a broader economic base has been a much-talked about item for Nevada leaders to chase for quite a while and in certain instances there has been significant improvement from time to time. More often than not (at least from someone not inside all the rooms which were used to bring about the attraction or start-up of business enterprises) the merits of selecting Nevada were based on the needs of the businesses – not on the basis of being able to contribute to Nevada’s growing government.
Herein lies the dilemma of trying to come up with a broader tax system, one which can withstand downturns in the economy without state spending having to be held in check, while at the same time seeking to convince business leaders to set up shop in Nevada. There seems to be a disconnect between the political and bureaucratic decision makers who believe that funding government is the priority and those who write out the checks to pay what government requires.
Having listened to speeches delivered by elected representatives, proclaiming that a well-funded education community is the reason that business enterprises will or won’t come to settle down in the Silver State…and thinking to myself that while individuals might select a relocation point because of considerations for the quality of the schools – businesses are interested in relocation or start-up in a location because of the opportunities for the business to be profitable. This boils down to ready access to markets which are willing and able to pay for the products or services the company produces with a cost of doing business climate – including government in all its forms and aspects – that provides for a return on the investments made.
Being “good corporate citizens” something that political types like to hype as essential to the collective needs of a community is only possible when there are profits sufficient to act in the socially acceptable way that a business owner is supposed to perform. When that business enterprise is unable to produce a profitable return employee benefits and actual payroll, along with all the other expenses that need to be paid, start seeing consequences. Nevada’s current skyrocketing unemployment is the result of business not having the ability to afford to conduct the level of business activity which provides those out of work with employment. What part of that reality is so difficult for Nevada political leaders to comprehend?
While they stick to their talking points in the process to trying to convince voters to re-elect them and return them to Carson City for another round of tax increases and unsustainable spending, perhaps an awakening can take place with voters rejecting the concept that the private sector (with business being a part of that private sector) exist to serve the greater needs of Nevada government. With this reversal of the current direction, perhaps we can regain momentum of having a Nevada business climate which makes it possible and desirable for companies to start or re-locate here, providing jobs and economic activity as a result of having the opportunity to be prosperous.
As the Nevada Vision Stakeholders Group moves forward in the direction of developing goals for Nevada to pursue over the next 5, 10 and 20 year time-frames one of the key and more central assignments is in the area of economic diversification. This quest for a broader economic base has been a much-talked about item for Nevada leaders to chase for quite a while and in certain instances there has been significant improvement from time to time. More often than not (at least from someone not inside all the rooms which were used to bring about the attraction or start-up of business enterprises) the merits of selecting Nevada were based on the needs of the businesses – not on the basis of being able to contribute to Nevada’s growing government.
Herein lies the dilemma of trying to come up with a broader tax system, one which can withstand downturns in the economy without state spending having to be held in check, while at the same time seeking to convince business leaders to set up shop in Nevada. There seems to be a disconnect between the political and bureaucratic decision makers who believe that funding government is the priority and those who write out the checks to pay what government requires.
Having listened to speeches delivered by elected representatives, proclaiming that a well-funded education community is the reason that business enterprises will or won’t come to settle down in the Silver State…and thinking to myself that while individuals might select a relocation point because of considerations for the quality of the schools – businesses are interested in relocation or start-up in a location because of the opportunities for the business to be profitable. This boils down to ready access to markets which are willing and able to pay for the products or services the company produces with a cost of doing business climate – including government in all its forms and aspects – that provides for a return on the investments made.
Being “good corporate citizens” something that political types like to hype as essential to the collective needs of a community is only possible when there are profits sufficient to act in the socially acceptable way that a business owner is supposed to perform. When that business enterprise is unable to produce a profitable return employee benefits and actual payroll, along with all the other expenses that need to be paid, start seeing consequences. Nevada’s current skyrocketing unemployment is the result of business not having the ability to afford to conduct the level of business activity which provides those out of work with employment. What part of that reality is so difficult for Nevada political leaders to comprehend?
While they stick to their talking points in the process to trying to convince voters to re-elect them and return them to Carson City for another round of tax increases and unsustainable spending, perhaps an awakening can take place with voters rejecting the concept that the private sector (with business being a part of that private sector) exist to serve the greater needs of Nevada government. With this reversal of the current direction, perhaps we can regain momentum of having a Nevada business climate which makes it possible and desirable for companies to start or re-locate here, providing jobs and economic activity as a result of having the opportunity to be prosperous.
Posted by Doug Busselman at 4/8/2010 8:50 AM 
Categories: Nevada
Tags: Nevada Nevada Budget and Taxes Nevada Vision Stakeholders
Categories: Nevada
Tags: Nevada Nevada Budget and Taxes Nevada Vision Stakeholders
Great title and post Doug.
Funny I thought it was the job of government and politicians to serve the public -- hence the name public servants.
Guess I didn't realize it was our job to serve them.
Glad they're letting me know how wrong I was.
Also of note -- exhibit 43123 on how spending more on education doesn't produce results -- http://www.writeonnevada.com/2010/04/more-spending-doesnt-make-kids-smarter.html
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