Hawaiian senator opposes casino tax

Larry Henry

Thursday, Dec. 18, 1997 | 11:16 a.m.

When Daniel Inouye first visited Las Vegas 50 years ago for a Disabled American Veterans convention, only the Flamingo and one or two other hotel-casinos dotted the Strip.

Since then Southern Nevada has thrived, but the area's economic health could be threatened, said Inouye, a Democratic senator from Hawaii, if Congress passes a national tax on casinos.

"It would have a very negative impact," said Inouye, who attended a reception Wednesday at the Boulder Station hotel-casino sponsored by the Las Vegas Pacific Rim Political Coalition.

The coalition, which represents an estimated 15,000 Hawaiians in Southern Nevada, treated Inouye to a traditional feast served at island political rallies: chili over white rice with a side of macaroni salad.

Inouye said the newly formed National Gambling Impact Study Commission might devise a plan to impose a federal tax on casinos.

Although he opposes casino gambling in Hawaii, Inouye said in an interview that a national tax would unfairly punish states such as Nevada that are reliant on casinos. Only two states, Hawaii and Utah, prohibit all forms of gambling.

Inouye said a bill that only targets casinos -- rather than one that taxes lotteries and other forms of gambling -- would stand a better chance of passing.

The reason is that a bill taxing casino profits would only hit the 26 states that allow casino gambling, while a wider-ranging bill would affect 48 states.

However, Inouye said Sens. Harry Reid and Richard Bryan, both D-Nev., are in key positions to help stop a national casino tax, if a bill is introduced.

Bryan serves on the Finance Committee, which handles tax issues, and Reid, if re-elected next year, would become the Democratic whip, the third-most powerful leadership position, Inouye said.

Reid, who is expected to seek a third six-year term, is being challenged by Rep. John Ensign, R-Nev., and retired publisher Bruce James, also a Republican.

The Senate whip musters votes on key issues, helps set the debate schedule and coordinates appointments with the White House.

Reid, who also attended the rally, said afterwards that 30 of 45 Democratic senators have said they'll vote to elect him Senate whip. The remaining 15 haven't committed to anyone else, Reid said.

The position would make Reid the highest-ranking senator ever from Nevada.

Inouye said he opposes casino gambling in Hawaii because unlucky bettors who couldn't readily leave the islands might turn to the state for social services.

"If I come to Las Vegas from California and lose my shirt, I can go back home," he said. "If you lose your shirt in Hawaii, you're on welfare."

Inouye, 73, was Hawaii's first congressman after statehood in 1959. He was elected to the Senate in 1962 and served on the Senate Watergate Committee in 1973 and 1974.

A decorated World War II Army officer, Inouye lost his right arm while charging a German machine gun nest during a battle in Italy.