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StumbleDemocrats quash mining tax to bolster Reid’s reelection hopes
Sunday, Dec. 6, 2009 | 2 a.m.
Harry Reid
Sun Archives
- Group pursuing initiative to raise taxes on gold mining (12-3-2009)
- Mining law reform considered in House (2-26-2009)
Beyond the Sun
State advocates of mining reform have long held that there is one path to accomplish their task given the industry’s clout and the Legislature’s often limp will: Take the issue to voters and change the Nevada Constitution.
Blocking that path is the single-largest concern for Democrats and their allies this political season — Harry Reid.
In a sign of just how all-consuming Reid’s reelection has become for Democratic-leaning organizations, the liberal Progressive Leadership Alliance of Nevada has altered its mining strategy, choosing to pass on a constitutional amendment to pursue changes in state law to limit the deductions gold miners can make before paying a 5 percent tax on net proceeds.
Having a potential tax hike on the ballot, which would presumably energize anti-tax conservatives, would have a potentially negative effect on Democrats on the ticket. And during the last legislative session the state teachers’ union proved an initiative petition can be an effective tool to get legislation passed, when it used the process as leverage to raise the room tax.
But it has become clear that nearly every decision made by Democrats this cycle is being carefully weighed for its potential effect on the Senate majority leader. That consideration has colored decisions big and small — from who should run in races down ticket to state Democratic Party messaging, including its recent glossy mailer touting Reid to voters.
Those calculations on mining reform — which has been a passionate cause of some party members and their allies who think the industry pays too little in exchange for the state’s natural resources that it profits from — led to a shift in strategy to do what’s best for “Uncle Harry,” as Democrats sometimes sardonically refer to Reid.
To understand why they think the shift is necessary, imagine if the more passionate advocates of mining reform went full tilt after an amendment to change mining law. The mining tax rate is written into the Nevada Constitution.
A question would be placed before voters in November, when Reid is expected to face a tough reelection battle. Mining would roll out a big campaign to defeat the initiative, driving up turnout among anti-tax voters.
Reid — the son of a hard-rock miner in Searchlight and a longtime friend of the industry — would be forced to take a side. Does he back the miners and anger the Democratic base, or back the base and infuriate rural voters?
Either way, the conservative pro-mining vote would be motivated to head to the polls in droves.
Bob Fulkerson, executive director of the Progressive Leadership Alliance of Nevada, wouldn’t mention Reid by name when asked last week why the group isn’t pursuing a constitutional amendment. But “there were objections from our member groups about doing that,” he said. “The objection was: ‘Does having a tax question on a ballot in which races are going to be close negatively impact our friends who also might be on the ballot?’
“The concern was, a) In a recession, with record unemployment in Nevada, would a tax question pass? And b) Could it be a drawdown on the ticket, up and down the ballot?”
That Reid’s reelection is priority No. 1 is not exactly a secret.
“We have the most important elected official in the history of ... Nevada,” said Billy Vassiliadis, the Democratic power broker. “Of course he’s the most important consideration this year.”
PLAN will attempt to collect the necessary 97,000 signatures by November to send the proposal to the Legislature in 2011, when lawmakers convene for their next regular session.
Lawmakers will have 40 days to act on the proposed law. If legislators don’t pass the initiative, or if it is vetoed, it will go in front of voters in November 2012.
Even if it becomes law, the Legislature has been an amenable place for mining lobbyists. The fear among mining reform advocates has been that, slowly or quickly, but most assuredly, any mining reforms made to state law will be whittled away by legislators. If it was in the constitution, that’s something lawmakers could never touch.
Progressives might have to live with that and take comfort in having given Reid his best shot at reelection.
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This is disappointing, but as long as PLAN secures the signatures and it goes to the legislature, 2012 isn't too far away.
Mining has never paid it's fair share.
Take Gypsum, for example.
In 2007, gross proceeds of gypsum mines in Nevada were $14,971,988.
How much did they pay in taxes?
$46.98.
Less than fifty bucks on almost 15 million dollars worth of gross proceeds. That's ridiculous.
In 2007, the gross proceeds of minerals in the state of Nevada was $5,157,136,841.
Mining companies, state-wide paid an effective tax rate of 1.5%.
Had they paid the constitutionally-mandated rate of 5%, Nevada would have seen 3.5x more tax revenue from mining.
The mining industry takes Nevada for granted, and it's time it starts paying its fair share.
"But it has become clear that nearly every decision made by Democrats this cycle is being carefully weighed for its potential effect on the Senate majority leader."
Huh????
So they OK'd Reid Jr. running????
Yep....having the Reid dynasty running for top positions in the state is a brillant plan by the Democrats. LOL. I just see millions of Nevadans demanding a Reid dynasty to run their lives.
I do agree with Schwartz that Reid generally runs the whole Democratic machine in state and surely must have pushed hard for the indictment of the Republican Lt. Gov. and the Democratic AG, Masto, immediately probably went into action once she got her marching orders from her boss which is the Reid.
He probably gave the Ok for the slanderous campaigns of the last election. Saying people were for cancer or wanted to children to die. That smells like Reid for sure.
I expect a similar black flag campaign this election cycle. I only hope Republicans are prepared to fight fire with fire.
Party and power first. The right thing to do second. Sadly, this is the state of politics both at the state and national level today. Both major parties are the same. Hopefully the people will send a strong signal these next couple of elections that we are sick and tied of this and we aren't going to take it any more.
Taxes and Harry Greid both suck. Get rid of both of them.
How many of these mining companies corporate offices are based here in the U.S.A? Go to Nevada mining and click the websites. Majority of these corps. are from foreign nations. We should tax these foreign companies who are making billions from extracting Nevadas' ore. These taxes would definately help our state. Once the ore is gone, so will the mining companies. Lets do the right thing before its to late. If Harry doesn't vote in favor of these taxes, we'll know who's pockets he's in.
Progressive Leadership Alliance is very flexible in setting policies, one day to the next! What is the Alliance's policy on energy? The dems have NONE to reduce the cost of gasoline. Alliance has NONE, either!
Yes, just give all of Nevada's wealth away to Canadian mining, Harry! Screw America, leave Nevada with big gaping holes in the ground filled with sodium cyanide just so you can win again. We really need your self serving interests, don't we?
Harry Reid at 70 years of age is a sick old and needs to be out out to pasture.
Nevada's future is at stake here so it's best we make sure Harry Reid has no part in it.
Have you ever seen a more thoroughly convincing argument for 100% public funding for election campaigns? Americans (and Nevadans especially) vehemently oppose the use of five bucks of their overall tax bill to go to election campaigns, but then scream holy-murder when those elected officials due the bidding of who paid the bill!! This is CHILDISH THINKING. CHILDISH!!!
So, let me see if I understand this. There is a tax coming, but the state leftwingers won't push for it until Harry Reid is safely back in office for another term?
CarsonNewsHound,
We need to take the money out of campaigning rather than adding more money to it.
Local Nevada residents contribute to local Nevada politician campaigns. All other contributions are illegal. No drop box mailing addresses or contributions form out of state interests.
Do that and well bring some sanity back in to politics.
Harry Reid at 70 years of age is a sick old man and needs to be put out to pasture.
Nevada's future is at stake here so it's best we make sure Harry Reid has no part in it.
Is there some reason why my previous post is somehow accumulating typo's after posting ?
Another proud day for Nevada progressives.
Mining robbery plot put on hold.
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Reid should be removed from the Senate immediately and he should face charges for his crimes.
Harry Reid and all the Reids should be voted OUT! Obama/Reid/Pelosi have taken our jobs, auto companys, banks, and now ruining our healthcare with their BIG SPENDING. We have no jobs because of these crooked politician! Vote him OUT! God Bless America!
I hate everyone named Reid
RHG the way I understand it is that these international companies that are mining ore from American soil are getting away with not paying a fair share for the billions of dollars in ore they are taking from Nevadas ground. Along with shipping it to their mainland to where these corporations are making billions they are skirting on paying fair taxes on what they extract in tonnage.
State advocates of mining reform want to take this issue to voters to change the Nevada Constitution to allow these foreign companies to pay our state a fair share on the ore being extracted from our state. The extra taxes we want to charge them might as well go into effect sooner than later because we don't know how long it will be before these mines are become empty of ore. Harry Reid wants to put the issue on the back burner until after the elections. I know who I'm not voting for.
In other words, their waiting for harry to dump all his mining stocks.