Letter: Average Nevadan considered in tax proposal

Friday, March 21, 2003 | 9:19 a.m.

Regarding the Sun's March 16 editorial, we fully expect some criticism of our tax bill. We also know that others support it. We would, however, expect our critics to have some comprehension of our intent.

You assert our plan includes an "expanded sales tax." Well, yes and no. It includes a 3 percent tax on services, but it exempts, among other things, health care, child care and the first $50 of a personal service transaction. We included these exemptions precisely with average Nevadans in mind.

Yes, we propose to increase the room tax. How you think this would be a burden on average Nevadans is beyond us. You suggest our plan allows large retail chains to escape paying their fair share. Absolutely wrong. You failed to mention at all our suggested sliding payroll tax surcharge under which a firm's obligation increases with an increased number of employees. Thus, you are in error to say our plan "seeks to let the big chains off the hook." (We would exempt gaming, mining, agriculture and utilities, which would seek to recoup the surcharges with rate increases.)

As to whom we represent, our proposed property tax increase is less than what the governor seeks and would not take effect so long as the governor keeps spending below a certain level. Our contemplated amusement tax is 3 percent, significantly less than the governor's plan, and is drafted such that movie goers would be exempt and golfers included. While neither of us smokes, our proposed increase in the cigarette tax, one of the state's most regressive taxes, is much less than what the governor wants. You make no mention of any of this. Additionally, our plan proposes creation of a fourth tier to the gross gaming revenue tax at 6.75 percent, a full one-half percent above the highest existing tier.

Legislators who disagree with the governor's tax plan have been castigated for not reading it. Fair enough. But we have read it, and we still don't agree with a gross receipts tax. Likewise, we would expect you to read our plan before passing judgment on it.

TERRY CARE AND MARK AMODEI

Editor's note: Care is a Democratic state senator from Las Vegas and Amodei is a Republican state senator from Carson City.