Las Vegas Sun

September 16, 2014

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Politics:

How many jobs would be lost if Nevada margin tax passes? It depends

If Nevada voters approve a new business tax in November, the state would lose nearly 9,000 private sector jobs and $413 million in employee wages, according to new research funded by the Coalition to Defeat the Margin Tax Initiative.

But those losses of jobs and wages could be offset, partially or entirely, by growth in public sector employment paid for by the tax measure. The growth in public sector jobs depends on how the Legislature decides to spend the money, said Jeremy Aguero, principal analyst at Applied Analysis who conducted the research.

If the tax revenues fund only new teaching positions, the measure would have a “net positive impact.” If it’s used to pay down debts, the economic impact would be overwhelmingly negative, Aguero said.

The measure would levy a 2 percent tax on businesses with $1 million or more in gross revenues. It is expected to generate about $700 million in revenue to support education, according to a previous study.

The campaign, which has already grown nasty, pits the state teachers’ union, the Nevada State Education Association, against state business leaders and Republican Gov. Brian Sandoval.

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