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twitterGibbons suggests $70 million tax break for businesses
Thursday, Oct. 1, 2009 | 1:52 p.m.
Gov. Jim Gibbons
Sun Coverage
Sun Archives
- State weighs business tax hike for jobless fund (9-16-2009)
- Gibbons: Jobless fund nearly broke, Legislature to blame (9-8-2009)
- Unceasing recession spurs more tax talk (8-14-2009)
- Nevada jobless trust fund nearly broke (8-3-2009)
- Unemployment benefits in each state (7-27-2009)
- Lawmakers hear support for increasing jobless benefits (3-18-2009)
- Gibbons undecided about accepting jobless money (3-2-2009)
- Jobless fund might be broke by end of year (2-2-2009)
CARSON CITY – At a time when the state’s trust fund to pay benefits to the jobless is broke, Gov. Jim Gibbons is suggesting a $70 million tax break to employers whose premiums support the program.
The governor said raising the unemployment insurance tax for more than 60,000 businesses might push some “over the edge” during this economic downturn.
“I am optimistic that by late 2010 our unemployment rate will be decreasing, we will have generated new jobs and we can begin repaying borrowed funds from the federal government,” he said.
The state has applied for a $264 million loan from the federal government to pay more than 100,000 unemployed in Nevada.
The state’s nine-member Employment Security Advisory Council meets Tuesday to make recommendations on the rates businesses should pay next year into the trust fund.
Its suggestion goes to Cynthia Jones, administrator of the state Division of Employment Security, who will make the final decision Dec. 7.
Nevada has the second highest unemployment rate in the nation and that has exhausted the trust fund. The state jobless rate in August was a record 13.2 percent with an estimated 182,000 people out of work.
Gibbons’ suggestion goes a step further than Assembly Speaker Barbara Buckley, D-Las Vegas, and Reno businessman Paul Havas, chairman of the advisory committee. They both said they would not like to see any increase in the rates for employers in 2010.
Nevada businesses now pay insurance taxes of between 0.25 percent and 5.4 percent on the first $26,600 of payroll per employee. The rate is based on the turnover in the business. The average rate now is 1.33 percent.
The base next year goes to $27,000. The average rate now of 1.33 percent means a payment of $353 per year per employee.
The governor is recommending the average assessment be lowered to 1 percent.
"By temporarily lowering the unemployment insurance tax, Nevada will retain existing jobs and encourage new businesses to relocate to Nevada, creating new jobs and further diversifying our economy," he said.
Last month, Jones said if the economy doesn’t improve in 2010, the state would have to borrow $1 billion to satisfy the claims of the unemployed.
The state is asking to borrow $48 million this month, $120 million in November and $96 million in December. Twenty-two states are borrowing money and are hoping the federal government does not charge interest on the loan.
The maximum payout now to an unemployed person is $400 a week plus an extra $2l5 thrown in by the federal government.
Discussion: 26 comments so far…
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This man is absolutely nuts.
Finally someone gets it, that taxing business only creates more lay offs. We need business in Nevada to hire people. Cut spending and give tax breaks to job creators and we will see this recession behind us quicker.
This is already one of the least taxed states. Not sure cutting taxes would help with the budget and repayment concerns. We need a more diverse tax structure, so the load is shared more equitably. But, whatever. This is Nevada. Where any tax is an affront to freedom and a sign of the impending communist takeover.
monkey boy gibbons is a complete fraud...
has an election coming up so guess it's time for a little pay back for his campaign supporters...
when will the stupid pathetic lying republican party realize that cutting taxes does not solve everything...
what a scum bag this monkey boy is!!!
I for one have no desire to pay more taxes. In fact I'd like to pay less. So this is fine with me. I'm sorry I'm a democrat who doesn't excessive taxes. I just can't remember the last time we taxed our way out of an economic downturn. Can someone else tell me?
We can give raises to firefighters, hire new cops and increase the pension contributions for our government employees but god forbid the backbone of our society, private business (you know, those folks who pay for government) get's a break or is allowed to eek out a profit.
All of you posters who believe we should pay more taxes are free to contribute more. Count me out. I've had enough government for a lifetime.
Businesses shouldn't be taxed in the first place. It's bad for business. Government spends too much money. Government should only be involved in public safety and that;s about it.
When unemployment money runs out, tell the unemployed "sorry, but the well went dry, go somewhere else".
That's doesn't "like" excessive taxes. Sorry for the malaprop.
Tax what you want less of, that is the White House plan on pollution and carbon. So why wouldn't taxing employment lead to less of it?
Why do liberals fight for a cause and then say the theory isn't valid?
think about it. Do we really want less employees or more of them?
Palin/Gibbons 2012!
ok, I have a question for everyone since I am not an economist/finance person. But, I need to layout my understanding of the situation:
1) So the NV unemployment fund balance is $0 or close to $0;
2) The gov. wants to lower the tax on unemployment benefits;
3) The gov. is banking on businesses moving to NV...
So, does it make sense to lower the revenue stream of a tax, to possibly collect more taxes with increased business contribution?
Does he have economic advisers with college degrees?
honestly, the average unemployment tax paid by businesses is 7 dollars per week. The Gov wants to lower it to 6 per week to save businesses. I don't think saving 52 dollars per year is going to help. Also, those who lose there unemployment benefits will quit spending money, causing more businesses to loose more money, and so on and so forth.
hey adrian...
these economic advisers are called stupid pathetic republican liars...
and their economic policy is pure fiction...
trickle down doesn't work...
greed kicks in and nothing makes it past the top tier...
conclusive proof...
the top 1% owns as much wealth as the bottom 90%...
game, set, match!!!
Gov, you had a chance to be a leader, you decided to do nothing. Now you are going to wipe the states a** with this? How about you get the free stimulus dollars working?
The governor is extremely over the edge - when can we get him out of office so he can pursue women full time and not bother the rest of us?
The Gov is one of the few that actually have a clue and show leadership while others just want something for nothing.
Hey peasants - get educated. Hiring employees is expensive and the only way to get businesses to do more of it is to make it less expensive.
All you Gov haters are stupid - he is showing leadership
hey tb, can u please answer the questions that i posted earlier.
Leadership = advance to the rear, walk the plank, whatever, Nevada is first in many people's hearts but last in very nearly every category! Charge!
Yes keep giving the jobless money. This makes a lot of sense.
Why don't the jobless idiots stop feeling sorry for themselves, get an education or move and get jobs in cities where they have jobs and are hiring.
Heck there are Mc Donalds all over the world.
Amazing how government works, it gets into everyone's pocket and then has to borrow to put some back.
: (
Memo to Gibbons: America's wealthy folks are global pimps of oppression. They don't pay taxes, and they definitely won't fight to defend America. Gibbons, they are just like you, they cut and ran from the Vietnam War too.
OMG, I can't believe anybody voted for this man. This is where democracy fails.
"We can give raises to firefighters, hire new cops and increase the pension contributions for our government employees but god forbid the backbone of our society, private business (you know, those folks who pay for government) get's a break or is allowed to eek out a profit." Business has had plenty of breaks here, and is not making this state a good place to live. How about cut out the raises to firefighters instead?
How is private business making this a decent state to live in? They don't pay enough taxes, and we have the worst of everything here. This state should have some of the best education in the country, but instead has some of the worst - partially because of the low tax rates paid here compared to other states.
Private business wants the government to work for private business, not to work for the overall best of citizens. And the ideology that what's good for business is good for everybody is way overly simplistic and shortsighted. If business had what they wanted, we'd still live with slavery.
According to IRS statistics for 2007 (latest year for statistics) the top 1% of income tax filers carried more 40% of the income tax burden. They paid 40.4% of federal income taxes paid by all individuals. The top 1% paid more federal income taxes the bottom 95%. This does not include any other types of Federal taxes ( estate taxes, payroll taxes (FICA and SECA) or excise taxes).
Stop all business taxes now.
quality counter-argument, afvet!
GOFO
Who do you think pays taxes to make government run? Really. Did you ever consider that if business is taxed out of existence then there won't be any money to run government? I mean this is simple logic here, not heady stuff man.
Government is of the people, for the people and by the people. Now go check the mailbox for your government check.
Adrian -I will answer your question
If a business is open and has employees, it pays taxes (even at a lesser amount). If it is closed it pays nothing!
I have a question for you? would you rather have a little of something, or a lot of nothing - unfortunatly, that is the realitly of where we are.
The govorner realizes this. Remember that $800 million tax increase, (and the car registration rebate for $300 mill the next year)
By my calculation, that $800 million tax increase has now resulted in over 3 BIILLION in tax revenues lost.
So I dont care at this point, my business is making nothing and paying near nothing. Raise'em again for all I care. That is the attitude you tax and spenders are up against.