Neal wins one, loses at state labor convention

Monday, May 22, 2000 | 10:58 a.m.

CARSON CITY -- Union leaders in Nevada support Sen. Joe Neal, D-North Las Vegas, for re-election, but they don't like his plan to raise the tax on casinos by 80 percent.

The Nevada State AFL-CIO, the umbrella for 140 unions with an estimated 150,000 members, closed its convention in Reno Friday, adopting resolutions to oppose the initiative petition to boost the gaming tax and a proposal to levy the sales tax on services.

It also voted to back Neal for re-election to the job he has held since 1972, Danny Thompson, executive director, said.

While Neal has fought for organized labor in the Legislature many times, his proposed casino tax "doesn't diversify the tax base," Thompson said.

"The gamers pay a disproportionate share of the taxes," he said, "and we don't think it prudent to narrowly apply taxes to one business.

"Increasing the dependency on gaming is not smart."

Neal is circulating a petition, which needs 44,009 signatures -- to increase the maximum tax on about 100 major casinos from 6 1/4 percent to 11 1/4 percent. It would bring in an estimated $338 million more a year.

Neal wants to force the Legislature to consider the issue. If the Legislature does not approve it, the petition will go on the 2002 election ballot for the voters to decide.

The convention also voted to oppose a service sales tax. The issue was raised by Gov. Kenny Guinn's administration, but the governor has emphasized he is not proposing adding services to the sales tax.

Thompson said a service tax would hit labor.

"It's a regressive tax and it hits low income and middle income families," he said.

A service tax could be imposed in such areas as haircuts, work by attorneys and doctors, dry cleaning and the printing industry.

The AFL-CIO will also take a look at the proposal of the Nevada State Education Association to levy a 4 percent business profits tax. The teachers unio is one of the AFL-CIO's members.

Thompson said a committee would study the pros and cons of the tax and then report to the board of directors, which will decide whether to support the plan.

Thompson said the teachers' tax proposal "does diversify the tax base and we're interested in that. But we want a chance to digest it."

The convention voted to endorse Justice Nancy Becker of the Nevada Supreme Court for re-election against two lesser-known opponents.

In addition to Neal, the labor organization agreed to back several other candidates.

It will support Rep. Shelley Berkley, D-Nev., who is after a second term in the First Congressional District that includes Las Vegas and some neighboring areas. Berkley is running against state Sen. Jon Porter, R-Boulder City.

On Thursday the more than 300 delegates unanimously endorsed Democrat Ed Bernstein, who is running for the U.S. Senate against Republican John Ensign, who wasn't invited to the convention.

The delegates also approved resolutions calling for the protection of laws on the prevailing wage and for workers compensation.