Western Representation

The final numbers are in for how much the Nevada Legislature is going to take from Nevada residents and businesses. Here is what they are taking.

-Sales tax increase of 0.35 percent: $280 million
-Tiered Modified Business Tax rate: $346 million
-Doubling of the business license fee: $61 million
-Changes to governmental services tax on vehicles: $94 million

Thanks to Anjeanette Damon of the RGJ for compiling these numbers.

Lets start with the regressive taxes, sales and vehicle services tax. These affect lower income people more as they will pay a higher percentage of their incomes as taxes. Unlike income taxes which low income families do not pay, there is no escape from these. Struggling families will have to struggle a little more to feed the massive financial needs of state agencies and education who claim they cannot cut any further.

The business taxes will make it harder for struggling business to add employees and will likely be the final nail in the coffin of some. The business tax punishes business who hire more employees since for each new hire, they will pay more taxes. The current economy makes it harder to pass these costs and combined with a higher sales tax will drive more people to purchase goods over the internet where the State does not collect sales tax.

The net gain from all these sources will be short lived if the economy continues to decline which I believe is going to happen. The harder you make it for business to continue operation, the fewer employees you will be collecting taxes on.

Increasing the vehicle service tax which is already the largest portion of the cost to register a vehicle will make people think twice before purchasing a new car. This also will reduce the sales tax that would have been collected on that new car purchase.

Our elected officials have proven once again that they are unable to look at the big picture. They simply tell themselves that raising taxes raises revenue. Two years from now they will be back in Carson City looking to see what other tax revenue to shake out of us as they make more excuses as to why they cannot make cuts.

Roger Uncategorized