Columnist Jeff German: Union has food for thought in tax debate

Friday, Jan. 17, 2003 | 11:26 a.m.

The Culinary Union has become adept over the years at cutting to the heart of an issue and presenting it in its simplest terms.

Union leaders Thursday reduced the raging debate over tax increases in Nevada to a level that average consumers can understand.

At a news conference, with about 100 housekeepers, food servers and bellhops backing them up, union leaders presented evidence that prices at Las Vegas Wal-Marts are virtually identical to those at California stores, even though California has an 8.8 percent tax on corporate revenues.

The meeting with reporters was called to rebut an earlier published remark from Wal-Mart Vice President Bob McAdam that the nation's largest retailer might have to raise its prices in Nevada if the state enacted a gross receipts business tax.

Union leaders went on mini-shopping sprees the first week in January at a Wal-Mart in Panorama City, Calif., and one in Las Vegas. They found that such items as Duracell batteries, Wrangler jeans, Crayola markers and Dove bath soap cost the same at both stores.

It wasn't a scientific comparison. Union leaders said they just picked out nine items randomly.

McAdam insisted Thursday that other factors besides taxes, such as wage rates and transportation costs, also figure into Wal-Mart's regional pricing. McAdam, however, couldn't explain what additional costs in Las Vegas would drive up prices to California's level.

Culinary Secretary-Treasurer D. Taylor ripped into Arkansas-based Wal-Mart Thursday for being "disingenuous" in its opposition to the business tax -- and more importantly for taking its profits out of Nevada without contributing to the education and well-being of the state's residents.

"What's really simple," Taylor said, "is that Wal-Mart makes a higher rate of profit here in Nevada, and they ship those profits out of state so our children, our schools, are left with nothing from Wal-Mart."

As the governor prepares Monday to announce which taxes will ease the state out of its $704 million budget shortfall, Taylor's argument may be the most compelling yet to get big business to pay its fair share.

The Las Vegas Convention and Visitors Authority this week cut the first of seven $1 million checks to the city for that light show upgrade at the Fremont Street Experience.

An LVCVA spokesman said it's just a coincidence that LVCVA boss Manny Cortez and his right-hand man, Rossi Ralenkotter, now are being slated for hefty pay raises.

It's also probably a coincidence that two of the three members of an LVCVA committee recommending the salary hikes, City Councilman Michael McDonald and Mirage President Bill McBeath, were involved in the Fremont Street bailout.

Both spoke out in favor of the $7 million giveaway last month, and McBeath attended a backroom meeting in November with Cortez, Ralenkotter and Fremont Street executives when the deal was sealed.