Study critical of Nevada Margins Tax initiative

Reported by: Terri Hendry
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Updated: 7/22 10:36 pm
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.
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adimwoler - 7/23/2014 1:22 AM
0 Votes
my best friend's step-aunt makes $67 every hour on the laptop . She has been unemployed for five months but last month her pay was $15187 just working on the laptop for a few hours. you can try this out. ??????www.jobsfish.com

adimwoler - 7/23/2014 1:21 AM
0 Votes
my best friend's step-aunt makes $67 every hour on the laptop . She has been unemployed for five months but last month her pay was $15187 just working on the laptop for a few hours. you can try this out. ??????www.jobsfish.com

adimwoler - 7/23/2014 1:21 AM
0 Votes
my best friend's step-aunt makes $67 every hour on the laptop . She has been unemployed for five months but last month her pay was $15187 just working on the laptop for a few hours. you can try this out. ??????www.jobsfish.com

oldguyincc - 7/22/2014 7:45 PM
3 Votes
As I recall, the NPRI consists of extremely conservative people dedicated only to improving business profits. That being said, I believe that they have nailed the effects of the margin tax. If the tax is approved, the price of everything will go up by much more than the 2% tax. Business will have to pay for the collection effort, the reporting procedures, the additional personnel costs, and they won't want to just "break even", b ut they will have to make a profit on the additional expenses. The people who will wind up paying this tax will be the people who have to buy things like food, clothing, medicines and services. This will not be just a slight increase in the sales tax. It will be a tax on everything. And there is no published plan for the additional "education' spending. It is highly likely that the margin tax would turn out like the California Lottery, which was to benefit "education". Ask a knowledgeable Californian how much of the lottery money the schools get. I read a news article several weeks ago that said that the margin tax would make Nevada taxes higher than California's.

tikidianne - 7/22/2014 7:28 PM
3 Votes
First off... our education "system" isn't as bad as you might think. Considerations not mentioned because it is "politically incorrect" is the fact Nevada has a large percentage of ESL students. That in itself will bring down the system because they have a more difficult time understanding. Just my opinion.. I know if I was an ESL student I would feel the same. And second, clearly the margins tax is a stupid idea that could crush our economy. I am personally struggling after recently losing my regular job and trying to get by self-employed (I am 61 yrs old). The margins tax would instantly put me further in the red. Any struggling business would be finished off. Any potential business considering Nevada would turn the other way, if they were smart. I just can't believe people are so ignorant to believe the rhetoric supporting this sure-to-be- catastrophic margins tax!!
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