The Newest Addition To The Magic Tax Mix
By: Doug Busselman, Executive Vice President
In the 2003 Nevada Legislature the effort was made and failed to institute a gross receipts tax – they were able to get the Modified Business Tax as the next best option for digging deeper into the private sector’s wallets. Those who believe that government deserves to be at the front of the line when it comes to collecting what the private sector creates, consider any mechanism that gets them the most possible – the best route – are now trying to restructure Nevada’s tax mix with a gross receipts tax, packaged as a “Margin Tax”. This past week’s announcement of the majority party’s tax plan is a broad-based assault on a very weakened private sector, struggling to regain its economic feet.
Never mind the slimmest glimmer of any sense of economic recovery (those mere $218 million-something in extra tax receipts that might be coming to Nevada coffers). The chorus of majority members singing off their scripted song-sheets did almost four-part harmony in calling the extra income “a drop in the bucket” – we need more to grow Nevada Government to the levels that will make our teacher union friends and the other “needy” of our political base most provided for. They think $1.5 Billion extra should do the trick for at least this time around…planning to come back for more…and more…and more the next shot they get.
Amidst the spin of “it’s for the children” and once we spend appropriate levels in the ivory towers of our higher educational halls – then economic diversification will come our way…and let’s not forget how many gaps our “safety nets” have…more government spending is the key to Nevada’s future in every way possible.
Once you decide that you’ve got to spend $1.5 Billion more than what the proposal for a balance budget offers (presented by Governor Sandoval and besmirched the entire legislative session by the majority party) – you then have to pay for that expansion with more taxes. Raising taxes has been the mission the Senate Majority Leader has been on since becoming the Senate Majority Leader in 2009. After listening to the speechifying he has carried out it is clear that the public sector is much more important in his vision of Nevada’s future than the private sector. Those who earn and build our economy need to be putting more into the collection plates of government tax-takers, cause it just isn’t enough with what’s being provided now.
The new magical “Margin’s Tax” is the key to our future ability to secure from each in accordance with their ability to provide in order to give to each according to their needs. Fashioned after the Texas Franchise tax (actually a gross receipts tax with different colored bows), we’re told that this baby will crank out tax receipts and solve Nevada’s “tax structural” issues once and for all.
But wait a minute, we hear this from a leader in the Texas Legislature…State Senator Steve Ogden, the chairman of the budget-writing Finance Committee when he chided the Legislature for not dealing with the "structural deficit": the margins tax raises far less money than the property-tax cuts that were passed at the same time, costing the state billions of dollars a year.
"Our system is out of balance, and we've got a significant structural deficit," he said.
Oops, it seems that this newest tax scheme for solving Nevada’s issues might not be the magic bullet that is being hoped for. Oh well, there will be future session of the Nevada Legislature and what else should this bunch do than spend more money than is available and increase taxes? In good times or bad, you can always count on government not having enough of your money to spend…
In the 2003 Nevada Legislature the effort was made and failed to institute a gross receipts tax – they were able to get the Modified Business Tax as the next best option for digging deeper into the private sector’s wallets. Those who believe that government deserves to be at the front of the line when it comes to collecting what the private sector creates, consider any mechanism that gets them the most possible – the best route – are now trying to restructure Nevada’s tax mix with a gross receipts tax, packaged as a “Margin Tax”. This past week’s announcement of the majority party’s tax plan is a broad-based assault on a very weakened private sector, struggling to regain its economic feet.
Never mind the slimmest glimmer of any sense of economic recovery (those mere $218 million-something in extra tax receipts that might be coming to Nevada coffers). The chorus of majority members singing off their scripted song-sheets did almost four-part harmony in calling the extra income “a drop in the bucket” – we need more to grow Nevada Government to the levels that will make our teacher union friends and the other “needy” of our political base most provided for. They think $1.5 Billion extra should do the trick for at least this time around…planning to come back for more…and more…and more the next shot they get.
Amidst the spin of “it’s for the children” and once we spend appropriate levels in the ivory towers of our higher educational halls – then economic diversification will come our way…and let’s not forget how many gaps our “safety nets” have…more government spending is the key to Nevada’s future in every way possible.
Once you decide that you’ve got to spend $1.5 Billion more than what the proposal for a balance budget offers (presented by Governor Sandoval and besmirched the entire legislative session by the majority party) – you then have to pay for that expansion with more taxes. Raising taxes has been the mission the Senate Majority Leader has been on since becoming the Senate Majority Leader in 2009. After listening to the speechifying he has carried out it is clear that the public sector is much more important in his vision of Nevada’s future than the private sector. Those who earn and build our economy need to be putting more into the collection plates of government tax-takers, cause it just isn’t enough with what’s being provided now.
The new magical “Margin’s Tax” is the key to our future ability to secure from each in accordance with their ability to provide in order to give to each according to their needs. Fashioned after the Texas Franchise tax (actually a gross receipts tax with different colored bows), we’re told that this baby will crank out tax receipts and solve Nevada’s “tax structural” issues once and for all.
But wait a minute, we hear this from a leader in the Texas Legislature…State Senator Steve Ogden, the chairman of the budget-writing Finance Committee when he chided the Legislature for not dealing with the "structural deficit": the margins tax raises far less money than the property-tax cuts that were passed at the same time, costing the state billions of dollars a year.
"Our system is out of balance, and we've got a significant structural deficit," he said.
Oops, it seems that this newest tax scheme for solving Nevada’s issues might not be the magic bullet that is being hoped for. Oh well, there will be future session of the Nevada Legislature and what else should this bunch do than spend more money than is available and increase taxes? In good times or bad, you can always count on government not having enough of your money to spend…
Posted by Doug Busselman at 5/7/2011 5:48 AM 
Categories: 2011 Nevada Legislature
Tags: Nevada Budget and Taxes
Categories: 2011 Nevada Legislature
Tags: Nevada Budget and Taxes
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