February 7, 2015

...AND THEN IT CAME TIME TO GOVERN...:

Brian Sandoval's Billion-Dollar Somersault (ALLYSIA FINLEY, Feb. 6, 2015, WSJ)

[O]nce he was safely re-elected governor, Mr. Sandoval in January pitched a third extension of the sales- and business-tax increases--and an increase in another tax, a graduated business license fee. Under his proposal, the current business license fee would vary by industry and be based on gross receipts. Most small businesses grossing less than $250,000 would pay about $400, double what they do now. But a real-estate firm earning $8.5 million would owe $24,231 while a farmer making the same amount would be dinned $6,106.

Nevada boasts a relatively business-friendly climate due to the absence of a personal and corporate income tax. However, its tax code is complicated, narrowly-based and heavily dependent on tourism and gambling. The governor claims that his "hybrid tax model" is the "least complicated" way to raise revenues and that it borrows "the best attributes from a true gross receipts tax, a margins tax and a business license-fee structure." The Nevada Policy Research Institute, a free-market nonprofit, says the plan is unnecessarily complicated and resembles the margin tax that voters rejected in November.

They're already set up so they aren't punishing income, but presumably they want business, so why tax licenses and gross receipts?  Tax what Nevadans, individuals and businesses, consume.

Posted by at February 7, 2015 6:33 AM
  

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