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Gov.-elect Brian Sandoval is finding himself increasingly isolated in his position against any new taxes. A large number of politicians and businesspeople acknowledge that tax increases will be necessary to maintain vital state services, including education.
Wednesday, Dec. 29, 2010 | 2:01 a.m.
To tax
Nevada’s educational system, which ranks near the bottom nationwide, accounts for 53 percent of the state budget. Without devoting more money to education, some leaders fear, the state will never become desirable enough to attract a diverse array of businesses or improve the quality of life here.Or not to tax
With Nevadans still feeling the effects of the Great Recession, some say raising taxes is an unnecessary burden on businesses and individuals, arguing that such revenue-boosting tactics would hurt job growth.
John Oceguera
Neal Smatresk
Sun coverage
Sun archives
- State has upper hand in budget turf war (12-27-2010)
- Sandoval to build own budget (12-22-2010)
- Panels propose ideas to squeeze state budget (12-4-2010)
- Sandoval budget assumes 10 percent cut to state, higher ed and furloughs (12-2-2010)
- Polished knife still cuts deep into state’s budget (11-28-2010)
- Expect Sandoval to flex his newfound political capital on his anti-tax pledge (11-10-2010)
- Let Sandoval take heat for budget, Democrats say (11-5-2010)
- Brian Sandoval defeats Rory Reid in governor’s race, now must govern (11-2-2010)
- University system snubs governor, won’t submit budget with cuts (10-28-2010)
- State’s budget woes could end programs targeting seniors (10-27-2010)
- Reid, Sandoval clash over state budget in lively governor’s debate (10-26-2010)
- Home assistance for disabled among services on budget chopping block (10-21-10)
- Museums hit under proposed cuts to state budget (10-19-10)
- Governor’s race tightens as budget debate avoided (10-5-2010)
- $2.5 billion state budget deficit: ‘Best-case scenario’ (4-23-2010)
- Gibbons: School districts should brace for 10 percent cuts (2-2-10)
- Brian Sandoval, Rory Reid spar over budget solutions (1-27-2010)
Developer Rich Worthington thought he had two big fish on the line, the kinds of companies whose arrival in Las Vegas would have made headlines, a tidy profit for his firm and created hundreds of jobs.
IKEA, which sells home furniture and accessories, wanted to open one of its massive showrooms here; Internet service provider EarthLink was considering moving a call center from California to Las Vegas.
The Molasky Group of Cos., where Worthington is president, wined and dined representatives of the two companies and took them on tours of the valley. “They were very interested in the tax structure, in the low operating costs,” Worthington said.
But both companies decided against coming here and both did so for the same reason — a lack of college graduates.
“IKEA said our percent of college graduates was just too low and they found they didn’t do well in that kind of market,” Worthington said.
EarthLink “said they hire and recruit college graduates, and it would be too expensive to recruit from Southern California and elsewhere, then bring them here.”
Worthington tells the story as an argument against the narrative that’s been written in Nevada for most of the past decade: Low taxes will draw businesses and jobs.
“We go year to year and the Legislature continually responds to lobbyists who continue to maintain this mentality about harvesting resources without putting anything back into the community,” Worthington said.
Meanwhile, Gov.-elect Brian Sandoval has pledged not to raise taxes, reasoning that the deepest recession in memory isn’t the time to burden businesses and individuals.
Worthington, who counts himself as a supporter of the governor-elect, and others, however, say the state must raise taxes to protect its education system, otherwise schools and universities will be hurt and the state will be less competitive nationally and less able to dig itself from the economic morass.
These conflicting views on how to improve Nevada’s economy will be the key debate between the governor and lawmakers during the 2011 Legislature. State government is projected to be billions of dollars short of the funding needed to continue state services, including schools, at current levels.
With his no-new-tax pledge, Sandoval increasingly finds himself on a no-new-tax island with only a small cadre of conservatives.
Republican leadership in the Assembly and Senate are on record saying they believe taxes passed in 2009, and set to expire in 2011, will have to be extended. Senate Majority Leader Steven Horsford, D-Las Vegas, has said there will need to be both spending cuts and tax increases.
Incoming Assembly Speaker John Oceguera, D-Las Vegas, last week became the latest legislator to say a tax increase will likely be needed.
The gaming and broader business community stress the importance of protecting education, which comprises 53 percent of the state budget. Even at that share of spending, the state is 46th nationwide in higher education funding per capita; 45th in residents with a bachelor’s degree; and 41st in the number of 18- to 24-year-olds who enroll in state universities.
At the same time, according to Oceguera, Nevada has the second-lowest tax rate in the country.
Oceguera tried last week to drive home what he and others see as the problem with a cut-only approach to the budget. Addressing the Clark County Commission, Oceguera said a 10 percent cut would hurt services and still not balance the budget. A gap of 7 percentage points would remain between revenue and expenses.
Although a tax increase won’t bridge the entire gap, he told the Sun, “at the end of the day, there’s probably going to be a need for revenue.”
Policymakers in Nevada, from legislators to governors, have a long reputation for listening to a small group of powerful lobbyists, many representing big business and gaming. So education advocates are focusing on getting buy-in from the private sector.
Jan Jones, a vice president at Caesars Entertainment and former Las Vegas mayor, said a broad group of gaming and business leaders thinks improving the education system “is in the long-term interest of the state’s economic health.”
“We are concerned about the governor’s perceived position to not consider a broad-based business tax,” said Jones, a Democrat. “Anyone who thinks we can move forward in this state without implementing a broad-based business tax is failing to lead and deluding themselves to the reality of our economic situation.”
Others in the business community say gaming leaders calling for a broad-based business tax don’t speak for the larger business community.
Monte Miller, a businessman and close adviser to Sandoval (as he was to Gov. Jim Gibbons), said “the majority of businesses don’t want tax increases right now.”
He criticized calls from gaming and mining for a broad-based business tax, saying the state’s modified business tax, which taxes payrolls, is effective and fair.
To be sure, any criticism or praise of the governor’s approach must be tempered by the fact that Sandoval won’t unveil his budget until late January. Sandoval’s staff said he remains committed to balancing the budget without additional revenue, including fees. Sandoval, who won a convincing victory over his Democratic opponent, has a broad-based transition team and plenty of political capital.
Whatever the governor and Legislature do, UNLV President Neal Smatresk thinks the path to better living standards and, more importantly, more jobs in Nevada runs through the university system.
“I am 100 percent sure that the people living here want a better life for their children, and you’re not going to get a better life unless you invest in the community,” he said. “I would call education the most fundamental investment that we need right now. There are unequivocal connections between the number of degreed and advanced-degreed citizens and the economic health of a region.”
That business-minded Las Vegans support his view is evidenced in the fact Smatresk is on the cover of the November issue of Business Voice, produced by the Las Vegas Chamber of Commerce.
Smatresk said he knows “many conservatives who are attuned to the role of UNLV, and they understand that this isn’t the time to back away from that investment.”
“And I don’t think any governor wants to be the governor who flushed higher education,” he added. “At some point, I think they’ll roll up their sleeves and make sure higher education, which is critical for this state, is going to be adding to the economy — not just cutting us.”
You need a college degree to put together Ikea's furniture??
Seriously, college graduates can't find that many jobs in Nevada that require a college degree either. The states with the highest percentage of millionaires based on disposible net worth tend to be states that have higher taxes. The states that have the smallest percentage of high net worth people tend to be "low tax states."
Gee the "low taxes" have certainly served the state well, Brian? What have you done to reduce the unemployment rate?
Since 1985 is when I came to Las Vegas. I hear the word diversification. In this case bring more business into Nevada so government doesn't need the gaming interest to always fall back on. Since 1985 nothing has happened and the powers that be will never allow diversification because when that happens someone's power is taken away.
Cutting state government, introducing state employee furloughs that reduce the amount of money that those Nevada families spend in the local economy, and lower taxes for businesses like Wal-Mart have been tried for two years now and business leaders and Republicans admit it is not working. Its just making our recovery more difficult. End the furloughs, tax businesses like brothels who have been begging to be taxed since this past February, and go after those who refuse to register their cars state-wide.
As for UNLV, its so bad there that cash and clothing collections are taken year-round by the Classified Staff Council for state employees who can no longer afford the furloughs but have no choice except charity. Yeah, international businesses like IKEA want to move to a state that can't even pay the people who run the universities and have to collect charity on the job to make it to the next day.
Get a clue, Brian. Or are you too busy naming the guy in charge of fighting nuke waste in Nevada to head the DMV? Lord, there was a move that made everyone in Carson City go, "Wha-wha-wha-what?"
William & William, 2 Bills that make sense!
The stubborn anti-tax faction of the state (the faction that put Figurehead Sandoval into office) has NO SHAME. And no business acumen, apparently.
Having an anti-tax stance as an ideology is one thing... but shunning clear revenue streams just so you can continue to adhere to an anti-tax/low-tax philosophy, is an IDIOTOLOGY that is ruinous to the populous hereabouts.
Mining rapes the land and reaps ROYAL rewards in a process that is tantamount to a FREE RIDE for FOREIGNERS, one that allows them to line their pockets with Nevada's precious natural resources without any substantive cost... WHY; WHY. WHY?
An idiot could balance the budget in Nevada without harming the overall business climate or adding additional tax burden to the average citizen, but the POWERS THAT BE refuse to budge.
They use the "No New Taxes" Mantra like a badge of courage, when in reality it's a protection racket. Mining & Gaming pay a fee to our politicians [lobbyists] to NOT GET TAXED.
Protecting rich, ultra-wealthy corporations from paying a FAIR RATE OF TAXATION ain't smart, Nevada, nor is it "prudent at this juncture"... it's just another example of the Nevada State Motto;
"We Will, By God, Bite Off Our Noses To Spite Our Faces"!!!
How about diversifying our higher education alternatives? Currently, we only have UNLV and a couple of JC's as education alternatives. I say let's develop the Nevada State College campus into a 4 year integrated university. We have 500 acres of land (UNLV is landlocked)and a great lab/classroom building in operation. Now is the time to build the nursing education building.
I agree with Jan Jones and several of the other people who have commented. Unless we improve the quality of workers (i.e. college graduates) in the state, we are going to continue to slide downhill. I think it's reprehensible that we are 45th in residents with bachelor degrees and 41st in the number of 18-24-year-olds who enroll in higher education. I'm a Republican, but I think the time has come to rethink our tax structure.
Now I can see why Gibbons does not plan to attend Sandoval's inauguration.
Gibbons already handed him the playbook on how to do nothing and make it look like he can do no wrong. The turnover is complete. Continuation of Nevada Republican Party knuckleheaded ideas will commence smoothly without a break in action. While the people are encouraged to puke regularly and at the same time convince them that they need to gargle with it for revitalization, it's good for you, believe me....
Get ready for another four years of suffering through yet again one more Republican Governor who thinks of nothing new and don't have the slightest clue on how to lead and govern. Only rape and pillage.
Same old thing. Kowtow to the rich and solve money shortfalls by going after teachers, firefighters, police and State employees...the very ones that can bail Nevada out of this mess we're in. And Sandoval will go after anyone else who looks at him funny. But leave casino owners alone. He needs their campaign money.
All the while they are doing this, point fingers at the working folks and say it's their fault, not mine, you made us do it to you, you deserve this, your dime for standing there and being a victim for our excesses.
Guaranteed Sandoval is a one termer.
Sandoval, the Latino Jim Gibbons.
Meet the new boss,
Same as the old boss.
"get the state income tax going"
Denny ..get off your computer and get to work collecting signatures if you want a atate income tax as that is the procedure if you are serious otherwise stop whinning!
As to the Suns attempts to rally the troops the last I heard was that Governer Sandoval was elected by a large majority and as he hasn't even taken office yet I have to wonder how 'isolated' he is.
I would be interested to know how many call centers require college educations as most of the successful ones don't even require a GED.
Cut public pensions, public employee salaries, and bloated government. You can't tax your way out of a deficit. Exhibit 1 - New Jersey, New York, California.
You don't need a BS degree to do housekeeping at the casinos on the strip.
This cut...cut...cut mentality plays very well in Lander and Churchill counties and to the those in Clark County who elected Sandavol, but as this article clearly show, keep cutting education funding and more companies will NOT consider Nevada as a place to do business. Unless they need an un-educated workforce.
"Monte Miller, a businessman and close adviser to Sandoval (as he was to Gov. Jim Gibbons), said "the majority of businesses don't want tax increases right now.""
As long as people with this attitude sit on any governors staff and represent "business", Nevada will stay in the hole it has dug for itself. How do the "businesses" which closed and are closing feel about his advise and suggestions? Or, is he representing the casino industry which pays the lowest tax rate for casinos of all the states which allow gambling.
http://www.noslots.com/CasinoTaxRatesbyS...
God bless our Idiocracy. God bless Nevada's deadbeat dad, Brian Sandoval.
Sure, conservatives are "on a small island". Most other politicians haven't yet learned that the "tax-and-spend" insanity they endorse is what got us into this mess. And more of the same won't get us out of it. Sure, the lack of viable college graduates is a problem to some. But the bigger problem is that over-spending by the state government agencies has put us in the poor house. ALL BUDGETS must be cut, including school and higher education budgets. Higher taxes is not the answer. That is the old, tired, worn-out liberal way. Now we are taxed to death.
Pssst. Mred: How could Sandoval have done "anything about unemployment yet"?? He ain't in office yet. Hello.
Colin: Your unmitigated bias is showing and your blathering is reason for you to be shamed.----Do you think the Legislature serves any function at all, or is the governor a dictator?
Thankfully we have a governor with principles who understands the only path to long-term sustainability for Nevada is via fiscally responsibility. The Las Vegas Sun's overt tactic of trying to isolate Brian Sandoval or paint him as the villain isn't going to work.
Why do you think Governor Sandoval won an election less than 8 weeks ago by 11 points and his central message was "No tax increase!"
Sandoval has hurt employment by clinging to Gibbons failed tax policies. That's how he has not done anything even though he hasn't become GOVO2 yet.
California: Agriculture, wine, fruit, nuts, cheese, aerospace, aircraft manufacture, film and TV industry, Silicon Valley, electronics, computers, software, tourism..etc.
Diverse economy and 12% unemployment.
Don't matter, Richard. The Legislature here could vote unanimously for an increase in gambling and mining taxes and Sandoval would veto it. Just in the nature of Republicans and their blind loyalty to take care of the filthy rich.
Fact: Right now in this economy people with Bachelors Degrees or higher have a 4.9% Unemployment Rate, while high school grads with no college have an Unemployment Rate of 10.4%, and people without a high school diploma have a 15% Unemployment Rate, which is near depression level unemployment.
There it is folks, the facts, the un- and undereducated will have a much more difficult time succeeding, not only in this economic climate, but in the very competitive future economy! We have to stop looking at taxes as punishment and start looking at them as our civic responsibility to our fellow man. I agree that there needs to be cuts in spending, and that politicians need to spend the money they collect more wisely, but in this economic climate there has to be shared sacrifice so that our children might have a brighter future! Education is the silver-bullet that can make the Silver State great again!
gmag: Perhaps you could enlighten all of us and tell us how little an amount the mining industry contributes to the state and the feds in taxes and fees. You are obviously an expert, so please tell us what the diminutive figure is. Please inform us how much it would improve the economy of our state if mining was removed, since they are just getting a "FREE RIDE". Please explain, oh wise one.
No one wants to be burdened with taxes ever, that's why we should be electing officials to do the hard job of evaluating our state's needs and then implementing strategies to satisfy those needs; no matter how unpopular. We need a state income tax for individuals and business, and no, not just casinos and mining who are already taxed over their fair shares. It isn't surprising that big businesses are passing on our state due to a population with low education. IKEA has jobs throughout the business and management, logistics, supply chain management all require skilled workers who have graduated from college. And what about Earthlink? Doesn't it make sense to staff a technology company with people who have studied that very technology? We need to fund the things we claim to be important to us. You want good schools and thriving university system? Well then you have to pay for them. With taxes.
> Most other politicians haven't yet learned that the "tax-and-spend" insanity they endorse is what got us into this mess. <
actually it was the spend and spend of the prior regime that got us into this mess. I know it'd be easier for your position if you could rewrite history --- but unfortunately that can't be done.
perhaps you can take a minute to explain how this state, with one of the lowest tax burdens in the country, is in the crapper. I mean low taxes are the answer, right? so why doesn't it work here?
Recall HIM NOW before it gets worse and figure out how to increase the state revenue stream without stealing from local governments. Elect the man with a plan - Rory!
vegas_tom: You made my point; that tax-and-spend politicians are responsible. The scenario is not attributable to any certain "regime", but more to a liberal mind-set. And there are libs in both major parties. No attempt to re-write history here---only to correct the abuses of the past so we can have a better future. And, why is Nevada in the crapper? I can answer you in three words: Obama, Reid and Californication.
let's face facts boys and girl...
the maggot republican party is in the hip pocket of big business and the wealthy...
period...
end of story...
and sadly...
sadly...
there just are too many stupid fools that make less than $50k that vote republican in this state...
stupid fools...
consider taxation on mining...
these clowns can not leave the state...
they can not go anywhere...
and yet...
yet...
these politicians are bought off by the mining companies...
and their taxes are not raised...
and the price of gold goes up...
and the profits get shipped out of state...
hell...
out of country...
these politicians need to be called out...
and humiliated...
so what's it gonna be sandy...
you phony smiling greasy big toothed clown...
are you gonna protect mining or our kids???
hmmm???
"Richard"...
May I suggest you do a little research, big guy?
"Between years 2000 through 2007, one-third to one-half of all the mines operating in Nevada reported zero taxable proceeds despite producing gold worth a half-billion dollars or more.
Over the same eight years, the Nevada mining industry has deducted 79 percent of the value of their gold production and paid taxes only on the remaining 21 percent.
Gold prices now are at an all-time high, above $1,000 an ounce, and the CEO of Barrick Gold speculated last year that the value could easily top $2,000. It costs $200 to $400 to mine and process an ounce of gold from ore."
http://site.nevadafairminingtax.org/Reso...
remember one other thing boys and girls...
sandy the greasy big toothed clown...
is from northern nevada...
so just watch this loser screw las vegas...
it's coming...
so get ready to protest...
LOUDLY!!!
A government for the rich and provided for on the votes of the uneducated poor. Gee, that's the making of a monarchy!
Get a brain, morAns!
Sandoval is a corporate sock puppet. Just ask Petey Ernaut! Education is only good for them and not for YOU.
the populus is too dumb for IKEA???
are you fricking kidding me!!!
IKEA!!!
my fellow nevadans...
there is but one solution...
WE MUST CUT TAXES!!!
p.s....
not having enough money to pay your bills, or to properly fund education, is not the fault of your "Obama, Reid & Californication"... there's PLENTY of cash running through Nevada. Thanks to the "No Taxes!" goofballs, Gaming & Mining are getting a FREE RIDE!
Great link from Vegas_Tom...
http://www.noslots.com/CasinoTaxRatesbyS......
Propaganda hit piece......pure and simple....I do not expect anything less from the Sun to use it front pages not to report the news but to push a political agenda.
This is more of an editorial item then a news piece....it is not even a good news analysis piece either.
gmag: You're side-stepping the issue. Yes, there are a lot of little mines which aren't yet profitable. The question was, how much do you think the "FREE RIDE" companies like Newmont and Barrick and others pay in taxes? You assert it is insignificant.----Add to Obama, Reid & the Californication of Nevada the liberal spending practices of state and local government agencies. Incidentally, the top 10 cities with the worst economies are blue, just like Clark County.
"Anti-tax a lonely stance"
Funny headline......let's see....the governor just won a smacked down landslide election with his core campaign of not raising taxes. I guess he is not that lonely.
I think I can solve the Democrats problem of wanting to raise taxes but having to deal with elected people who don't.
How about running an a campaign to raise taxes!!!!!
That way you don't have lie your way into office.
You just tell the truth.
You say, "I want to raise taxes. I want a corporate tax. I want a income tax. I want to raise sales taxes. I want to raise mining taxes."
Boom...you get elected without lying about "what us...what ??? we want to raise taxes???...no way!!!".....and you will have the power of people behind you.
Now you got the power of the people working against you.
Novel idea....speak the truth when you run for the office....that will do us all some good.
Now...chop...chop....run next time with "I want to raise taxes" campaign.
Over taxation of viable, profitable businesses is a recipe for future disaster. If we don't learn from history, we are doomed to repeat it. Over taxation of the timber industry in liberal Oregon killed that industry in their state. Do we want to do the same to mining and gaming in our state? Viable, profitable businesses help the economy, not hurt it. Why would we want to drive them away? The feds have been doing this on a massive scale, driving businesses abroad.
hey richard...
to answer your question...
YES!!!
i want to tax the hell out of mining...
those maggots are going to ruin this state...
the most sickening thing i ever heard in politics was...
when a reporter ask monkey boy gibbons if he would vote for raising taxes on mining his answer was...
IF THEY AGREE TO IT...
are you fricking kidding me...
if they agree to it...
puh-lease...
stop the nonsense...
and another thing...
no way in hell should a tax provision regarding a specific industry be in a state's constitution...
no way...
no how...
never...
ever...
all that means is that the industry in question has too much power...
way too much power...
period...
end of story...
game, set, match...
TAX THE HELL OUT OF MINING!!!
IT'S NOT LIKE THEY CAN TAKE THEIR BUSINESS ELSEWHERE!!!
hey governor sandy...
listen up you phony smiling big toothed greasy slippery clown...
what's it gonna be skippy...
MINING OR OUR KIDS???
HMMM???
mred and svpeaacock,
IKEA doesn't want a showroom (to sell furniture) here. The market (college grads) is too small. Either LV doesn't have enough sophistication to appreciate their product or the bucks to buy it.
Hey Richard, try reading the article. you're spouting off about tax and spend when that isn't mentioned. The point of the article is cutting spending alone will not balance the budget. Any business owner knows you have to generate revenue to cover expenses.
"Oceguera tried last week to drive home what he and others see as the problem with a cut-only approach to the budget. Addressing the Clark County Commission, Oceguera said a 10 percent cut would hurt services and still not balance the budget. A gap of 7 percentage points would remain between revenue and expenses."
How come the Democratic party did not run a "We need to raise taxes big time"???
I am confuse.
Are you saying that Democrats lied about that this last election or yesterday they just finally realized that they needed to raise taxes?
> it is not even a good news analysis piece either.<
bla. bla. bla.
its funny how if you don't agree with the premise it's garbage. Well I'm here to tell you that I'm thrilled your opinion don't matter as much in the real world as it does in your head.
We need to leagalize, regulate and mega tax prostitution in Las Vegas, it s rampant in Vegas anyway AND we already have legal brothels.
Reality check people, this is Nevada, most visitors come here to indulge sin, mega taxes from prostitution will give our state millions.
It is time Nevada, we got a really great excuse to do this now..
Vegas_tom.
Thanks for agreeing with me that we are talking about OPINION and not news.
No question serious educational reforms are needed, for Kindergarten on up. But throwing more money into a black hole of bureacratic inefficiency, ineptitude & social "feel good-ism" is not the approach most Nevadans want.
How about: Higher performance standards for students & faculty, performance-based pay & benefits, longer days & years, standardized K-10 testing, and expanding & increasing the Millenium program so that those who do perform are afforded an increased opportunity to progress. And an expanded voluntary remedial program for those who dropout of HS but later figure out they need a degree (and most will) based in public schools but largely made up of volunteers.
Sandoval & the Democratic Legislature need to come up an aggressive reform plan first (not bandaids or stopgaps), then we can all figure out how we'll pay for it.
Sandoval = Gibbons, Gibbons = Sandoval.
> that tax-and-spend politicians are responsible.
at the peril of repeating myself it was the spend and spend crowd that got us here. Unfunded senior prescriptions and two wars off the books. Look it up --- it's all there to see.
> only to correct the abuses of the past so we can have a better future. <
I couldn't agree more --- but I suspect my solutions to the problem would be vastly different than yours.
> And, why is Nevada in the crapper? I can answer you in three words: Obama, Reid and Californication.<
lol --- see. you're making believe the "stuff" hit the fan when Obama got elected. It didn't. I started Oct of 2007. Go look at the charts of the DJIA and you can see exactly when the whole thing went tilt. Again --- if you're being genuine about fixing the problem you can't arbitrarily decide when the problem started.
And I noticed you passed on my very simple question regarding the panacea that low taxes bring unlimited growth. Nevada is proof positive that theory is not true.
'"We go year to year and the Legislature continually responds to lobbyists who continue to maintain this mentality about harvesting resources without putting anything back into the community," Worthington said.'
There's the beef.
Give the Federal government $1,000,000 or throw the $1,000,000 into your fireplace.
At least you get some heat back from the fireplace for your money.
More tax money is merely more money wasted with our current political lackeys and corporate yes men.
It's like handing out loaded handguns on the playground at recess.
The results are predictable.
> Thanks for agreeing with me that we are talking about OPINION and not news.<
lol --- Sherm, I mean sarge --- your ability to process is not normal. I said _your_ opinion doesn't matter anyplace but in your world. I did NOT say the piece was a opinion piece.
Heh -- if I want an opinion piece passed off as news I could go to FAUX, Brietbart or the RJ.
Try to keep up --- there were about the same number of words in my reply as in one of your blog entries. I did that on purpose; to see if I could stay within your tiny attention span.
thank you.
"Hey Richard, try reading the article. you're spouting off about tax and spend when that isn't mentioned."
You need to read the article.
They are talking beyond just balancing the budget.
They are talking about new spending.
"said a broad group of gaming and business leaders thinks improving the education system "is in the long-term interest of the state's economic health."
Forget Ikea. There are other companies willing to relocate to Nevada due to the fact that taxes are much much less than California. I am sure that Ikea does not like to pay all those high California corporate taxes including their inventory tax. The market for Ikea type quality products is in college towns where quality of product is not that much of a concern. I know since I bought lots of their stuff when my daughter was in college back east. After she graduated we donated the stuff to Goodwill as it was falling apart.
vegas_tom....I knew that you would back-track.
Predictable lib koolaid response......of course you think it is news hard core fact journalism...because it is a lib political opiece that is short of cited facts and full of random quotes and even its headline is misleding.
The governor just (like two months ago) got elected in a landslide victory with a no tax increase pledge as the core of his campaign.
How in the hell is that "lonely"??????
Is that really journalism?
Do you think that matches up with the f...ing reald world?
I already know your response.
It will be .....of course...the Sun's koolaid taste good.
> There are other companies willing to relocate to Nevada due to the fact that taxes are much much less than California. <
and those companies are?
Hell, name 10 and we're good.
The majority of Nevadans do not value education and appear mystified that higher education benefits the state.
Nevada has the lowest number of Masters level graduates in the United States.
Why does Nevada have the highest unemployment rate, the highest mortgage default rate, and is listed as the worst of many quality of living issues?
As Forrest would say, "Stupid is as stupid does"
For some reason Nevadans want to believe this system of "all for business" and none for citizens is the "holy grail".
Yeah, the "no taxes" has worked really well for us, hasn't it?
You need a college degree to put together Ikea's furniture??
****
You're missing the point. A lot of companies want the young kids with college degrees NOT to "put together Ikea's furniture" (sure they may start out on the sales floor) but with an eye toward the future. If IKEA is like a lot of companies, they will put the college grad employees thru training programs, teaching the business and how the company runs with eventural promotions to the higher up "corner office" positions. Companies don't want the high school dropout running the company - THOSE are the ones that will be putting together the furniture while the college degreed ones tell the ex-valet parkers on what to do and basically run the business.
Our current legislature is the problem, NOT the governor (who, which has been pointed out earlier, hasn't even taken office yet!) They are the most fiscally irresponsible Legislature in the history of the State. Sandoval should stick to his guns and keep State government out of Nevada businesses, regardless of what IKEA and Earthlink say about us. If those companies can't recruit college graduates in this economy then they have serious problems which relocating to Nevada probably would not help. What a crock of b******t
Here is some real world facts for you vegas_tom that you will not find in a Sun news article.
Here are companies that moved from California to Nevada in the last couple years.
Bill Miller Engineering, Ltd.
FallLine Corporation
Intuit moved its Innovative Merchant Solutions LLC
Kimmie Candy Co
Mariah Power
Patmont Motor Werks, Inc.
Red Truck Fire & Safety Company
Understand.com
CSAA moved a call center from CA to NV
American AVK
Northwest Territorial Mint's has shifted significant work from CA to NV
Buffalo Wire Works
Tech Spec
RiteMade Paper Converters
Bonnie Plants
Swift Communications
Scougal Rubber and Saginaw Control and Engineer
There are tons of more.
Obviously, more than 10...
Are you good now?
Assembling IKEA furniture can be a nightmare and if you mess it up, you can't return it. Education in Nevada must be improved. Taxes on Casinos could be Doubled and you would still have some of the lowest Casino taxes in The World. Mining Taxes - It's Nevadas Gold, why give it away for the few jobs these International companies create. Is there a Billionaire in Nevada that has not had a Temper Tantrum - maybe a small income tax will bring a little reality. After all they just got a huge Federal Tax cut.
Again-If low taxes were the solution Nevada should be filled with jobs from Border to Border. It's all about an educated population and the sooner everyone understands, the sonner our recovery can begin.
Let's face the facts. Our schools are nearly 50% minority, many, many "new arrivals", the children of uneducated parents. Speaking a different language. They're escaping absolute terror in their native land, such as with 3,000 murders this year in Juarez alone. And we're supposed to produce college graduates with this mix?
No, a culture that treasures the idea that a 15 year old girl is now an adult is alien to our country. Keep cutting, Sandy, we can't afford to be the "safe haven" for millions of breeders.
So let me get this straight...
The President hasn't rebounded our nation's economy in 2+ years, and it's not his fault. It's just all the extraneous economic factors.
But...
Nevada's repub leadership runs a tax freeze to entice businesses to move to NV for two years, and it's a miserable failure. Just because it's a bad idea. And not because the nation's economy has been in the gutter.
Ha...
Double standards rock!
It is shameful that Nevada is last, or among the worst, in so many categories. Our education system is a joke, and people across the country know it. The irony is that the casinos whine that we can't tax them any more because it will affect their rates and negatively impact tourism and ultimately how many people they employ. Other states tax casinos at rates ranging from 16 to 50%. Ours is still single digit. Yet, the casinos tack on a "Resort Fee" to their rooms of anywhere from $15 to $25 per night. That in itself, based on a rate of $100 which you can get almost anywhere is equivalent to a 15% increase to the customer. And then they cry that we can't tax them an additional two to three percent. Casinos and mining, in our time of need, should step up.
Nevada has always had some of the lowest state taxes in the country but that hasn't kept us out of the deepest ditch, has it?
Hmmm, wonder why?
The last time I sat (I'm 6'2" tall and 200lbs) on an IKEA stool it broke. So I'm not that excited about seeing it peddle it's overpriced junk in Las Vegas. Recent studies have shown that children who are home-schooled are 5-10 years more intellectually developed than kids who attend government schools. And they accomplish that without a certified card carrying union member teacher. So when we start crying about how bad education is in Nevada we need to track it back to the original problem, a lack of family structure with an emphasis on academic achievement. And there is ample proof that throwing more money at education does not increase results. Parents set the bar for their children. If you want to ensure mediocrity and failure just keep allowing the government to decide the future of your childrens' education.
I'll try again for the GED dropouts:
In order to change the taxes on mining and/or to add a state income tax in Nevada you need to gather enough signatures to have your petition voted on by the citizens of the state [Nevada] if approved it then has to be voted on and APPROVED again two yrs. later... then it can be part of you tax and waste plan!
In short it has to be voted on and approved two times by the eligible voter in Nevada!
What part of this do you clowns not understand?
Birdie colon gmag vegas tom Vc Dennis and all you others needing more of my taxed money so you can get a raise which locations in the valley will you be collecting signatures in?
"Nevada has always had some of the lowest state taxes in the country but that hasn't kept us out of the deepest ditch, has it?"
It is silly logic.
For years, Nevada has the largest growth in the nation and one of the lowest unemployment rates for almost a decade. The governments in Nevada spent that revenue and grew and grew and grew the size of the government. Now we are paying for that growth.
Our neighbor, CA, has one of the highest tax rates in nation. Did that help them now? No, they are just behind us in terms of both unemployment and foreclosures. Plus they have borrowed billions to fund their operational budgets.
There are other high tax states that are in worse shape.
At least Nevada has more room deal with its budget.
Those high tax states have reached the limit in new taxes and whenever they raise them the revenue just drops because people get tired of get whacked with taxes and regulations and they just move on to other states or countries.
listen up you blowhard republican fools...
the cut taxes bull$&!# is OVER...
tax cuts for the rich and big business does NOT create jobs...
if it did we would have the best economy in the world...
rather we have the great recession on our hands...
and...
let's stop the government waste bull$&!# too...
we are 46th in higher education spending per capita...
got that you losers...
46th...
there is no waste...
we are too far below the norm too have any waste...
any waste at all...
so stop the frickin nonsense...
shame on you...
and double shame on all those seniors that post here who enjoyed a great public education system elsewhere for their kids...
but know don't want to pay their fair share to the community for other's children...
double shame on you losers!!!
Anti-tax or Anti-theft?
I support criminalization of taxation -- allowing those desiring to forfeit their wealth and income the ability to do so without being victimized by government theft.
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No one likes higher taxes, but as a state, we're getting what we paid for.
IKEA doesn't need college graduates to work in their stores. IKEA needs college graduates to SHOP in their stores. That is why they decided not to build a store here. Nevada's education system does not encourage the growth of their key clientele.
It's a well known fact that Nevada's system of education is lacking, and has been for a number of years. Now, we're living through the consequences. While lower taxes encourages businesses to come to the state, an unprepared and under qualified workforce will drive them away, demonstrated by the IKEA debacle illustrated in this article.
Private sector industry jobs were the driving force behind our economy, but employment rates for those with only a high school diploma will remain stagnant in this state for another five to ten years due to the poor economy. No 21st century corporation or industry will come to Nevada if we don't increase the number of college graduates with solid math, science, and English language skills. What's worse, many with higher education are beginning to see the writing on the wall and are leaving the state.
Nevada's economy is based on the 20th century model. While this contributed to the state's rapid development during our boom years, it just won't fly in the 21st century. We need a strong, disciplined, and well educated work force in order to compete, but as in the past, we're not showing much interest in such an investment.
It's not about putting together furniture at IKEA. Their market research suggests that college graduates are the demographic that tends to purchase their furniture most often and they do not do well in markets with fewer graduates. Thus, why put a big showroom in an area where you don't have a reasonable market to sustain your financial goals.
Once again, Vegas does itself in by just being Vegas. Interesting also that low taxes was not enough to lure these companies here. It just goes to the point that it is not simply low taxes that companies are looking for. They are driving for long term growth, quality of life issues, education and many other things that would make their employees want to work for them, among many other things. You can bark about "lowering or lower taxes to create more jobs" all you want. So my question is: where are the jobs?
You want lower taxes to create more jobs as the solution? But yet the example from the story doesn't fit the old "companies will hire if you cut their taxes." For consideration here is that companies won't come to your town if your town, for lack of a better term, "sucks," on a variety of indicies. So in this case lower taxes does not equal more jobs. Educate your youth, don't simply have an economy primarily based on low level service jobs, create livable and desirable communities with good schools, and then you begin attracting the kinds of people that make companies want to move to your town-- something that today's most successful cities understand well. Good paying jobs with an educated population makes quality people want to live there. This brings in better teachers. The schools begin performing well. Other families want their kids to go to those schools. College graduates want to move their families there and they can land one of those decent jobs in an area with good schools for their kids, and on and on... the synergy unfolds.
contd from above
If you have an economy that continues to rely on gambling and vice, then one can only expect more of the same. The era of "I think I am rich becuase my house went up in value 250% so the economy here must be great, so I'll borrow against my home for extra cash to spend, which will drive the economy" ARE OVER! Every modern American city is going to have to rethink itself in order to become competitive in today's economic environment. Look and the trade deficit. If you are importing more than you are exporting, you must be buying allot from elsewhere. And if you ain't exporting more than you're bringing in you do not have an equal exchange of resources. That can really only mean two things 1) increased debt, or 2) your country's resource is simply service related, not goods related. Well if it's more of the latter, you are in trouble, because once other countries learn to do what you do in terms of #2 (i.e., India). I believe technology and healthcare based jobs are really the only long-term play if you want to roll the dice Las Vegas. But let's be honest, this ain't Raleigh-Durham, Austin or Boulder. One thing is for sure, though, unless you clean up the schools and get more graduates here, expect more of the same.
So all Sandovall campaign boils down to is the same old Gibbons mantra: The Cheese stands ALONE!
"In order to change the taxes on mining and/or to add a state income tax in Nevada you need to gather enough signatures to have your petition voted on by the citizens of the state [Nevada] if approved it then has to be voted on and APPROVED again two yrs. later... then it can be part of you tax and waste plan!"
That's not entirely true, pmmart, at least when it comes to mining.
Constitutionally, taxes on mining are limited to 5%. HOWEVER, the mining companies don't pay anywhere near 5%. Their effective tax rate, after deductions found in Nevada Revised Statutes, is closer to 1%.
If we want to increase revenue from mining, it's fairly simple. A bill passes through the legislature and clears a veto from Sandoval. The bill simply repeals the NRS which stipulate the overly generous deductions.
If a tax rate OVER 5% is desired, THEN you would have to overcome the Constitutional challenges you cite. But we can recoup a much larger percentage of taxes that we are right now through a simple bill in the Legislature that rescinds those deductions.
If low taxes stimulate the economy, why does Nevada have he worst economic profile in the country.
If the Bush Tax Cuts are the best way to stimulate the economy, how come the period between 2001 and 2010 has been one of stagnant growth for the country?
I'm tired of the same arguments and conventional wisdom. These policies don't work.
The Bush administration gave a $1.5 trillion tax cut to the wealthiest 2% and still had ZERO private sector jobs created during their Lost Decade.
Baggers hate to hear it but voodoo economics do not work and that's a fact.
>>>Cutting state government, introducing state employee furloughs that reduce the amount of money that those Nevada families spend in the local economy, and lower taxes for businesses like Wal-Mart have been tried for two years now and business leaders and Republicans admit it is not working.<<<
Somebody finally gets it. I am a manager for a state agency, and while I am grateful for my job and I am certainly better off than many people, for the past year and a half I and my colleagues have essentially been subject to a five percent income tax that no one else has had to pay. All it has accomplished is to worsen our personal financial situations, at a time when demand for our services is up - the primary difference between our situation and that of many people who are being laid off.
Far too many people have parroted the Jim Gibbons line about "bloated" state government. Nevada has fewer government employees per capita than any other state. The workload in my unit has tripled over the past three years, yet we have gotten zero staff to cope with it. For the past 18 months I have also had to juggle schedules to account for for furloughs, which have accomplished nothing apart from ensuring that we don't have enough people on duty to do our jobs.
I'm sure I will be ripped by the "I pay your salary, you work for me, we don't owe you a job" crowd. Here's a thought: I'm also a taxpayer, and I pay part of my own salary. There isn't a day goes by that I don't try to figure ways to use the taxpayers' money on the most efficient way possible.
As much as many people like Governor-elect Sandoval's superficially popular but overly simplistic solution to our budget problems, cuts alone are not an acceptable solution. Sooner or later we will reach a point at which services drop below acceptable minimums, and we won't have enough people left to deliver them.
"The majority of businesses don't want tax increases right now."
OK, what about the majority of wealthy retirees that move here to hide their money, contribute nothing to the GDP, and still have to be serviced by local and state governments?
Funny how they always slip thru the cracks in these discussions.
> Do you think that matches up with the f...ing reald world? <
here's the real world -- Gibbons got voted in and did nothing for the state (and that's giving him a generous benefit of the doubt). So what changes with Gibs2.0?
and had no idea you were grammatically challenged. The term used was "moving" -- not moved. I'll look at your list later to see if there's more than junk jobs on that list.
And stop putting words in my mouth. I did not cite this story as the definitive works of Gibs2.0. That'll take a while. But I sure don't cast it away as trash as you do.
But since you're so smart tell me what happened to the low taxes = greatness formula?
The cuts to things you don't give a crap will only take it so far. Will you howl when seniors programs start getting cut left and right? I'm thinking so. That's, as you might say, a "predictable" reaction from the shallow right.
1. Mr. Gibbons was a "no new taxes" guy. How did that work out?
2. The projected Nevada budget deficit is approximately one year's expenditures (out of two). The biggest slice of Nevada's state budget is education.
3. The Nevada budget deficit as a percentage of Nevada's Economy is much larger than the California Budget Deficit is as a percentage of California's Economy. We would be lucky to have a problem the relative size of California's.
4. Pushing expenditures onto Clark and Washoe County, and taking money from those Counties and the Cities they contain is just pushing the problem down to the big Counties and major cities -- without increasing the ability of those local governments to fund those expenditures.
5. Here are the options: (A) Close down the state for a year. (B) Double taxes. (C) Close the schools and prisons. (D) Some combination of cuts and taxes.
6. Apparently, we are not adult enough to do D. So the choices boil down to A, B, or C, because the State cannot shift enough expenditures to the local governments to close the budget gap enough to make a real difference.
And to imagine that there are those who forfeit the fullness of life just so those left behind can continue to be subjected to the joys of an ideology as criminally corrupt and immoral as taxation.
You just can't make this stuff up.
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Good for you, Sandoval! My pockets are not bottomless. Why should the NV State government get a blank check from citizens. Do without, make due, cut waste and make smarter spending decisions. It's that simple! Tell the elected officials in D.C. the same goes for them too.
Jim Sandoval has dropped the ball and the game hasn't even started yet.
This is quite easily the simplest problem to solve in the history of mankind. Why all the fuss? Nevada in the last 15 years has gone from a bi-annual budget of $750 million to over 3 billion in general fund spending.... Let that sink in folks. A factor of 4 increase in general fund spending in less then 15 years. Now the state claims they don't have enough!?!?!? The nerve of some people. Tell the people who have been taking pay cuts on the strip to help keep their coworkers jobs and tell their children the reason their lifestyles have been so drastically altered due to those pay cuts. This state and it's employees and management unions and it's waaaaay over paid judges and "public service" employees need only take a 20% cut in pay and our services remain the same and we as citizens have a surplus in our budget. Let's take the crazy pay increases our "public service" employees have taken over the last 8 years and see how that alone effects our states bottomline. If me Amd mine have to bite the budget bullet so do our socalled "public servants". Only in America do our servants get rich while those that produce do so under the threat of a "public service" uprising.
Oh yeah and the first person that brings up teachers pay looses. That's not who I'm talking about and you know it. Ready GO!
"As for UNLV, its so bad there that cash and clothing collections are taken year-round by the Classified Staff Council for state employees who can no longer afford the furloughs but have no choice except charity."
Did you ever look at the salaries of the half-million dollar a year coaches there? What about the quarter of a million dollar salaries of the teaching staff?
How about the up to $600,000 for local and county ping-pong players? Crying poverty?
Get a clue?
Open the public libraries 24-hours, 7 days per week, and get a self-education after high school or pay for your own "higher" education.
53% of the state budget to be number one at the bottom? My back pew is sore!
States all across the nation will soon be bankrupting and so will local governments because of government employee's salaries and benefits.
So much for your higher standard of living.
Go ahead, Liberals, bleat!!!
I realize, reading most of your comments why Earthlink and Ikea do not want to come here.Their products appael to a more educated crowd of people than the ones one finds around Nevada . Your comments of" The state raising taxes on the only businesses you have", would constrict those and drive away new businesses seeking better tax grounds. Why do you not get engaged in your childrens education and keep them in the colleges to earn a degree.? There are enough colleges in Las vegas for your children to get a good education . The governement and higher taxes will not take that responsibility away from the parents. By the way I live in California and do see lots of businesses flee here every day including me . The amount of welfare the lazy and illegal pepole here receive creates a whole class of dependent abusive citizens .You are responsible for your own children if they do drop out of school early . I have talked to many casino employees in Las Vegas and hear about the benefits and paid vacations the ones get who are employed there .That is a lot for a business to pay for. Maybe most of you here, who are commenting, have never beeen in business for themselves or lived of government handouts and therefore make these uneducated remarks.I will still move here and open up a new business and hope to find some ambitious associates who I can employ one day ....
Mae Weste
Even with the budget cuts, UNLV continues to overspend.One would hope that the administration would pay more attention to budget details, but they rely on chairs, directors, and managers who hide their over-spending and cry about how much they've sacrificed and need more money. The people in charge are the same people who purchased homes and spend beyond their means. Raising taxes and throwing more money their way will not help. These are academic educators who have no experience in finance and budgets and they need to be educated and tutored about budgets and have basic monetary principles instilled in their way of life before given authority over public funds. In the meantime, why would we even consider throwing more money at higher ed when we can't even get the majority of our kids to graduate high school? K-12 needs more attention first. And that does not mean more money - because the same has happened in the School District. Money does not solve the problems. Ethics and grass-roots common sense must be a primary focus.
Nevada doesn't need smart people, just the opposite in fact. Vegas was built on dumb suckers losing everything down the slots and at the tables. Nevada needs to focus on bringing more and more suckers across the Stateline.
Good luck with that!
education is the key to this city survival. not construction
How about a NEW tax?
Oh, that's right...there's not much left to tax.
Oh wait...AIR...let's start a "breathing tax" for visitors.
If they complain or refuse...just cut off their air!
Gentlemen...I think we have a winner!
Accounting 101 will tell the Governor elect that the State doesn't have enough income! Spending has been cut substantially and that has not been sufficient to cover the loss of income as a result of the recession. WAKE UP and stop being a politician and act like a leader and do what is necessary to correct the deficit. Raise the Sales Tax and increase the taxes on the "hands off" mining/casino industries in order to generate the cash flow necessary to fund the States expenses. It will not hurt business it will help keep the States economy alive.
Would a 2 to 3% temporary sales tax increase stop big ticket retail sales? NO! A bankrupt State will however.
Myself, I find it a little unbelievable that the gaming companies pay less in taxes than the citizens pay in sales tax.