Letter: Teacher-backed tax has pitfalls

Friday, Feb. 23, 2001 | 10:24 a.m.

While the NEA and other local teachers organizations have been rallying to stir public support for the 4 percent business tax, the public should see the tax for what it really is, an income tax: a tax on the income of business and eventually on everyone. Would the public be more critical of this tax if it were a 4 percent increase in the sales tax! I think so.

There are several things that this tax really is:

1. Probably unconstitutional under the Nevada Constitution.

2. A very regressive tax that will eventually hurt our less fortunate citizens the most.

3. An income tax on all Nevadans.

4. The creator of another monster state bureaucracy to administer the tax.

The constitutionality is for the lawyers to figure out. Why is this a tax on all Nevadans? Because any business owner whose costs (the tax) have risen is usually forced to pass this increase in costs on to their customers. You! Well, you may say, that can't be so bad. Think again. Because the business owner has increased his prices to compensate for the tax, now he owes more tax! Guess what? Another price increase to offset the additional tax. And on and on and on, eventually hurting lower-income citizens the most.

The citizens and legislators of Nevada should think long and hard about support for this tax. It's not the way to improve the education of our children.

STEVE BOUGON