RENO, Nev. (MyNews4.com & KRNV) -- A new study on the proposed two-percent margins tax on Nevada businesses has been released. It is critical of the proposed tax saying if approved by voters in November, it could result in the loss of 3,610 private sector jobs in 2015.
The study was commissioned by the conservative watchdog group, the Nevada Policy Research Institute, which opposes the tax.
The study said the margins tax would raise an estimated $862.5 million in its first year, and add 1,970 public employees, leading to a net job loss of 1,640 in its first year. The study also said imposing the margins tax would reduce Nevadan's disposable income by $240 million annually, and decrease investment in Nevada by $7.1 million a year.
The NPRI released the study to reporters on Tuesday. The group provided a demonstration by toppling 3,610 dominoes, to represent the potential jobs lost. "The margins tax is a particular destructive tool, a very destructive form of taxation." said NPRI President Andy Matthews. "Our analysis finds that the economic consequences in terms of our jobs picture in Nevada will be dire and this will come at a time when our economy is still struggling to recover."
Matthews said up until now, the margins tax discussion has been primarily focused on the businesses it would hurt. He said this study shows the impact would be broader. "This is going to impact workers. It will impact all of Nevadans in terms of cost-of-living."
The Nevada State Education Association was quick to respond. President Ruben Murillo said, "I guess the question is this; how many jobs have been lost in Nevada, because we don't have a good education system in Nevada?"
Ruben said supporting education is an investment that will benefit the economy in the long run. "We rank last in every category when it comes to education funding, graduation rates and so when is there going to be an investment in this?"
You can read the full study by visiting the Nevada Policy Research Institute's website