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Sunday, Nov. 25, 2012 | 2 a.m.
Another view?
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I heard on the news that even though voters shot down Question 2, our legislators still want to raise property taxes and/or tax personal services such as haircuts.
Why is it in this town that everything regarding raising taxes is on the table except raising the gaming tax? Why is it that the industry that rakes in the most money in this town is exempt from higher taxes? Why is it that the casino industry pays the lowest gaming tax in the world right here in Las Vegas?
As far as I’m concerned, if Steve Wynn and Sheldon Adelson can afford to give multiple millions of dollars to try to defeat Democrats in the last election, they can afford to pay much higher gaming taxes.
Think of how much all those millions would have helped our state. Why do our legislators want to continue to raise taxes on all the rest of us and not touch the gaming tax?
The first order of business should be for the People of Nevada to craft a very simple amendment to the State Constitution that removes the carve out for the mining industry. Put them on the same footing as everyone else, then look at what fair tax rates need to be.
Instead of trying to make changes to the carve out, simply remove it completely. That should be the easiest way to produce wording that will stand up to any court challenge brought to invalidate the ballot measure.
Unfortunately that process will take about four years now (since I highly doubt our legislature will take action on it.) So in the meantime, I have to admit that some action must be taken in other areas.
On a tangent, I see no reason why we should not also be working towards having a state lottery here. Why send that money to California? It might not be enough to fix our education budget problems, but it would help.
All should pay and/or pay more. It's not a gaming issue, it's not a mining issue, it is a peoples' government issue. If one sector of the economy is asked to pay more, then all sectors should. Period. End of story.
CarmineD
I agree with both boftx and CarmineD. Nearly 150 years ago, the mining interests in Virginia City wrote tax protections for themselves in the State Constitution and those tax priveleges haunt us to this day. Gaming has enough clout to keep its taxes low in Nevada while it agressively competes to do business in other states at four times or more the tax rate it pays in Nevada.
Lastly, we keep hearing "we can't afford more taxes". This isn't true for most of us. What is true is we just don't want to.
"...but...but...but we can't tax the rich...because...because...they're the job creators...."
Yeah. Right. Sure. Gimme a break. Tired of that worn out phrase that only serves a very small portion of people while the rest are told to sacrifice more and more and more and more and most and most and most.
Increase the gaming tax til they howl.
I'm sick and tired of all these lame excuses thrown out there not to do it.
The funniest one I heard was Steve Wynn said he would move his base of operations to China.
I say raise the taxes and let him move there, change his party affiliation to communist, a card carrying member of the Peoples Republic of China, and permit him to enjoy all the benefits of living in a classless society where everyone is equal. In other words, it's an idle threat uttered from his lips. He's not gonna do it. He knows he's got it good here in Las Vegas. He's not going to move.
Like I say, raise the gaming tax.
And if it's not raised, we get rid of all the political bums that run interference for the rich all the time. Start over again with new people in power who will actually show the political courage to do the right thing.
Because you keep them in office, they could care less about fixing anything in Nevada. It will be steady the course and they will repeat the abovementioned mantra over and over again. Even when it's proven wrong. But they will add something like, "...we're doing the will of the people of Nevada..." or some other nonsense along that lines as another lame excuse why they won't do it.
Republicans should not agree with any new taxes increases or taxes unless there is significant reform of law, regulations and enforcement that deal with government employees and unions.
Tax, tax, tax, tax. This is the liberal mantra, in order to fund the ever escalating entitlement mountain that grows each and every year.
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Nevada no longer has exclusitivity when it comes to gambling, most people can find some sort of gambling either in their own state, or close enough. While it would be incredibly nice for our state to have some diversity and offer a wide assortment of business lifestyles, our undereducated, heavily tattooed youth and overmedicated chain smoking older adults ensure that fortune 500 companies generally look elsewhere.
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This means it is imperative that we offer the absolute best vacation experience we posibly can. This includes some of the most incredible room rates in the country, unbelievable selection of food for any budget or taste, entertainment selections that rival anything other states can offer, and convention accomodations that make it easy for business people to meet, demonstrate and discuss whatever their particular business is.
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The folks posting seem to think the casinos are raking it in hand over fist. Here are two links for you.
http://www.lasvegassun.com/news/2011/jan...
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http://www.lvrj.com/business/nevada-casi...
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One from the Rj, one from this insert. In 2010 and 2011, casinos lost over 6 billion dollars. In those two years, they paid over 1.5 billion in taxes. It becomes awfully difficult to maintain a business, when your financial outlay exceeds your income. Keep in mind, in addition to the taxes the casinos paid, what isn't factored in, are all of the income taxes paid by the casino employees, sales taxes collected by the retail and restaurant sectors in the casinos as well.
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It is imperative we keep our casino and resort sector as healthy as we possibly can, so that we retain the advantage over our out of state and out of country competitors by blowing them all out of the water with a far better experience. Heavier taxes ensures the opposite.
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Assuming any of the liberals that post here had the actual patience to read through this, let me do something that seems to be a lost art. Let me offer a workable compromise and see if this is something you all might find achievable and fair.
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Keep the tax rate as is for all casinos for any annual result that ends with a loss, neutral or minimal gain. If our economy does turn around, and growth and gain in our state once again turns the corner and the casino sector is starting to show profitability, taxes can be slightly escalated on the profitable part of the income.
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This would ensure struggling casinos would still be able to maximize their income, work to solve their issues and remain competitive, while increasing overall tax income from the more sucessful properties without putting unfair or undue hardship on them with a blanket tax increase.
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Any thoughts?
Tax the casinos at the same rate as Macau, since Adelson and Wynn are more than happy to pay this to Chinese Communists. Maybe add 5% for the fact that they live in a free and democratic country which allows them to act like jerks. Do this and will attract the best talent and have the best schools in the country.
I would not presume to know whether 'most of us' here can afford to pay higher taxes or not - I can only speak for myself when I say I can NOT !
Government is way too large. It's too intrusive. Give it more tax money and it just does more to sustain its payroll. It's a huge jobs machine that keeps getting bigger and bigger.
Cut government. Cut spending. You won't have to increase taxes.
I see a lot of whining about taxes on mining and gaming.
Remember gaming and mining companies pay all the regular taxes plus they pay special taxes that other companies do not pay.
They pay their fair share plus more.
And now you want them to pay even more.
Republicans should not agree to any tax increases unless their is significant real union government employee reform.
The 2011 Barrick Mining annual report is out. This is a link to the Barrick Annual Report for 2011.
http://www.barrick.com/theme/barrick/fil..................
Barrick Mining either owns outright, or is a partner in a joint venture in 7 gold mines in Nevada. To determine my estimate a profits for 2011, I assumed the price of gold at $1500 per ounce, or less. The current price for gold is in excess of $1750 per ounce. The first four mines listed are totally owned by Barrick Mining. In 2011, according to their own figures, Barrick Mining produced almost 97 TONS of gold from their Nevada Mines. That is same weight as 16 full size, original HUMMERS. Barrick Mining has reported record profits and dividends in both 2010 and 2011. Barrick paid a total of $47,300,000 in local and state taxes last year.
The Cortez Hills Mine produced 1.42 Million (44.375 tons) ounces of Gold at a cost of $245 per ounce. If you assume a conservative profit of $1000 per ounce, you get a profit for the Cortez Hill mine of $1,420,000,000.
Bald Mountain Mine produced 93,000 ounces (2.9 tons) at a cost of $558 per ounce. Assuming a profit of $900 per ounce for the Bald Mountain Mine, you get a profit of $83,700,000.
The Gold Strike mine produced 1.09 MILLION ounces (34.0625 Tons) at a cost of $511 per ounce. Again assuming a profit of $900 per ounce for the Gold Strike mine, you get a profit of $981,000,000.
Ruby Hill mine produced 127,000 ounces (3.96875 tons) at a cost of $334 per ounce. Assuming a profit of $1000 per ounce for Ruby Hill, you get a profit of $127,000,000.
Barrick Mining is involved in three joint ventures in Nevada.
Barrick owns 33% of the Marigold mine. Barrick's share of production was 51,000 ounces (1.59675 Tons) at a cost of $761 per ounce. For the Marigold mine, assume a profit of $700 per ounce. The total profit would be $35,700,000.
Barrick owns 50% of the Round Mountain mine. Barrick's share was 178,000 ounces (5.5625 Tons) at a cost of $612 per ounce. Assuming a profit of $800 per ounce for the Round Mountain mine, we get a total profit of $142,400,000.
Barrick owns 75% of the Turquoise Ridge mine which produced 135,000 ounces (4.21875 Tons) at a cost of $569 per ounce. Finally for the Turquoise Ridge mine, assume a profit of $700 per ounce. This would give a profit of $ 94,500,000.
Barrick is actively exploring in the Carlin Trace in Nevada. The Carlin Trace is one of the richest gold deposts in the world. Barrick's annual report shows that 44% of the companies income comes from North America. Don't forget that Barrick is also mining silver along with the gold in Nevada. If you add all of the projected and conservative profits, the total is $2,884,300,000. The mining industry in Nevada is also actively mining silver, copper, lithum and many other minerals. Of course mining pays it's fair share. The entire mining industy will pay less than $100,000,000 in state taxes. Compare that to the over $425,000,000 gaming pays.
@Sgt Rock. See my post above on the Barrick Annual Report. Then tell me again that mining pays their fair share. The only taxes that other businesses pay is a 1.66% pay roll tax and unemployment insurance. NO BUSINESS IN NEVADA PAYS A TAX ON PROFITS EARNED IN NEVADA!!!!
There is a way to provide funding without resorting to the property tax. The legislature has refused for years to address the issue of taxes on profits earned in Nevada. That is the purpose of the 2% initative tax petition.
NPRI and others claim that some Nevada businesses may be forced about of business because of the tax implications, and we shouldn't pass the initative.
What they fail to tell you is that if the initative is not passed, the national corporations will continue to make profits in Nevada without paying any taxes on those profits. That's right, NO NATIONAL CORPORATION PAYS ANY STATE TAXES ON PROFITS EARNED IN NEVADA!!!!!!
The list of corporatations includes, but is not limited to: Penny's, Sear's, Macy's, Dillard's, Wal-Mart, Costco, Sam's Club, R.C. Wiley, Walgren's, JVC Drugs, K-Mart, Border's, Smith's, Applebee's, Chili's, Ruby Tuesday, Friday's, Sweet Tomatoes, McDonald's, Wendy's, Burger King, Von's, Albertson's, Bank of America, Well's Fargo, Chase, US Bank, Starbucks, Pizza Hut, Domino's, Ross, Denny's, IHOP, FootLocker, Home Depot, Lowe's, PetsMart, Office Depot, Staples, Office Max, Enterprise, Hertz, National, Avis, American Airlines, Southwest, Jet Blue, Delta, Holiday Inn, and many others. Just go through the phone book and check off any national corporation. NONE OF THOSE CORPORATIONS PAY NEVADA TAXES. Do you really think they will leave the state? Don't you agree that any revenue lost from the few Nevada companies that go out of business will be more than made up. The other question to consider is how sound were the Nevada businesses that went out of business due to this petition?
@anchorbine. Just as a point of information, Nevada DOESN'T have a state income tax. Any income taxes paid by citizens of Nevada are federal, and are used to provide revenue to the federal government.
SgtRock,
Mining doesn't come even close to paying a "fair share" of taxes, and anyone who knows me knows how much I hate that phrase.
Freedom Radio hit the nail on the head. This whole raise the taxes is a shell game. Hold the government representatives accountable for their spending and waste. It is ironic back in the days before the rescission these government officials were spending money like a drunk sailor. Things are tight now so they want the easy way out and quick fix not a good long term solution. Raising property taxes is a slap in the face to voters. Having a lottery is a joke show me one state that has a lottery that has lowered its tax rate for voters. The State government is starting to sound like an airline company that just keeps raising its fees and baggage rates. How ironic this has now come out in public after an election and not before. The voters did have their say END OF STORY.