Contact

Keystone Corporation

  • Home
  • Board of Directors
  • Join
  • Renew Membership
  • Email Updates
  • Contact
  • Rss

Archive for month: February, 2014

You are here: Home » Updates » Political Update – March 9, 2015 » 2014 » February
February 18, 2014
18 Feb 2014

Political Update – February 18, 2014

NTU to Nevada legislators: The margin tax is a losing bet

By Victor Joecks
Executive Vice President at the Nevada Policy Research Institute 

The National Taxpayers Union is an independent, non-partisan advocate for taxpayers, including the taxpayers of Nevada. NTU has taken a look at the union-backed margin-tax initiative and has reached a similar conclusion as NPRI – the margin tax is a terrible, terrible idea. Today, NTU sent a letter to every state legislator and Gov. Brian Sandoval detailing why that is the case. 

August 1, 2012 

An Open Letter to Nevada Legislators: The Margins Tax is a Losing Bet! 

Dear Legislator: 

On behalf of the 3,100 Nevada members of the National Taxpayers Union (NTU), I urge you to reject efforts to impose a modified gross receipts or “margins” tax on businesses with at least $1 million in revenue per year. This scheme threatens to hinder small business growth and capital formation and should be opposed by any legislator that believes in quality tax policy. 

Read The Full Article Here


Keystone’s Mission:

To recruit, support and advocate for candidates for public office who support private sector job creation, low taxation, a responsible regulatory environment, and effective delivery of essential state services.

Keystone’s Goals:
  • To focus on candidate support on state legislative races and the governor’s office.
  • To oppose any form of corporate income taxes or other business taxes that discourage capital investment and therefore job creation.
  • Support limiting Nevada state government spending to the rate of population growth.

Quote:

“NTU to Nevada legislators: The margin tax is a losing bet.“ – Victor Joecks, Executive Vice President at the Nevada Policy Research Institute

Save the Date

Keystone Annual
Luncheon

April 9, 2014
Silverton Hotel

For more information 
call (702) 952-2456

 


 

in Political Update /by webmaster/#permalink
February 11, 2014
11 Feb 2014

Political Update – February 11, 2014

The sword of Damocles (would be) hanging over my head

By Jim Clark
President of Republican Advocates

That is how an out-of-state business owner being recruited to move to Nevada by Governor Brian Sandoval described a ballot measure to tax gross business margins. He returned to his home state and remains there.  Meanwhile Nevada businesses capable of relocating are nervously looking at sites in other states.

 This tax proposal, dubbed the “Education Initiative” by its sponsor the Nevada State Education Association, will go before Nevada voters this November.  It was supposedly designed to raise a lot of money for public education but the way its written there is no guarantee of that.  What it certainly will do is drive business and jobs out of Nevada.

Under the proposal businesses would calculate gross receipts, subtract an arbitrary allowance for costs plus payroll taxes and be then be taxed 2% of the result.  Firms with gross revenues under $1 million would be exempt until revenues exceed the exemption by as little as $1.00 at which time the tax would be assessed against all earnings, a severe disincentive to growth.

The only other state that has anything like this measure is Texas where it was instituted to replace another business tax and provides for taxes at half the rates sought to be imposed in Nevada.  Nonetheless the controversial and confusing law has spawned continuous battles in the Texas Legislature and at least 57 lawsuits according to Texas manufacturer Andy Ellard who was a panelist at Directions 2014, an economic forum of over 800 area business leaders held at the Peppermill last week.

Tahoe resident Tim Wulf, who owns two Jimmy John’s Gourmet Sandwich shops in Reno, told the Directions 2014 audience that he calculated his tax liability at more than $30,000 if the ballot measure passes this November.  “(The proposal would be) clearly destructive to the economy.  Ultimately some businesses will fail and some won’t come to Nevada at a time when we’re trying to attract them here” he added. 

Governor Sandoval told the business leaders:  “It’s a bad idea.  It will hurt Nevada businesses and stifle growth.”  Nevada Taxpayers Association Carol Vilardo said:  “There are myriad issues that will put us in the courts” alluding to potential law suits because the measure lacks conformity with federal tax laws and is uncertain over which parts of business revenue would be taxed. 

Is there anything good about the proposal?  If so you probably wouldn’t hear it at Directions 2014.  Education Initiative Campaign Manager Dan Hart said in Las Vegas that the measure “is an effort to address more education funding which the legislative process has resisted doing.” 

The teacher union estimates the proposal will raise about $800 million annually all of which would have to be spent for K-12 education.  Are they fooling themselves?  The Texas law is still being disputed in courts so the answer is unclear.  But even if the estimate is correct the Carson City District Court held in 2012 that: “the initiative does not prevent the legislature from supplanting educational funds with the margin tax.” 

In short if legislators think K-12 education deserves $800 million and that’s what the initiative produces they can spend funds that would otherwise go to education on anything they want.  That’s what happened in California when they approved a lottery to “fund education”.  Whatever the measure might raise there is no accountability under the initiative.  The funds would simply be divided up among the 17 school districts to be spent any way they want.

Voters should bury this thing next November.


Keystone’s Mission:

To recruit, support and advocate for candidates for public office who support private sector job creation, low taxation, a responsible regulatory environment, and effective delivery of essential state services.

Keystone’s Goals:
  • To focus on candidate support on state legislative races and the governor’s office.
  • To oppose any form of corporate income taxes or other business taxes that discourage capital investment and therefore job creation.
  • Support limiting Nevada state government spending to the rate of population growth.

Quote:

“That is how an out-of-state business owner being recruited to move to Nevada by Governor Brian Sandoval described a ballot measure to tax gross business margins.“ – Jim Clark, President of Republican Advocates

Save the Date

Margins Tax Initiative Breakfast
with Curt Anderson – CPA

February 18, 2014

Las Vegas Country Club 

Mr. Anderson will present 
pertinent facts about the
Margins Tax as well as 
examples on how it 
would affect different 
types of Nevada businesses. Mr. Anderson is currently owner of the CPA firm Fair, Anderson & Langerman. He has 32 years of career experience. 

For more information 
call (702) 952-2456

______

Keystone Annual
Luncheon

April 9, 2014
Silverton Hotel

For more information 
call (702) 952-2456

 


 

in Political Update /by webmaster/#permalink
February 4, 2014
04 Feb 2014

Political Update – February 4, 2014

School choice, not a new, oppressive tax, offers students better opportunities

National School Choice Week highlights the path to improved public education

By Chantal Lovell
Nevada Policy Research Institute

Liberals have already begun to tout the margin tax proposal that will appear on the ballot this November.

Because implementing a modified gross receipts tax that would increase taxes on businesses already losing money isn’t a winning sound bite, liberals are trying to spin it differently.

Proponents of the margin tax are instead deceptively billing it as the Education Initiative, saying the money raised would go into Nevada’s Distributive School Account. It’s important to note, however, that even if the tax passes, legislators wouldn’t actually have to spend more on education. Indeed, total education spending could even decrease.

Of course, the Nevada State Education Association, which spent over $640,000 getting signatures for the margin tax, claims that additional money will improve Nevada’s education.

 

Read The Full Article Here

 


Keystone’s Mission:

To recruit, support and advocate for candidates for public office who support private sector job creation, low taxation, a responsible regulatory environment, and effective delivery of essential state services.

Keystone’s Goals:
  • To focus on candidate support on state legislative races and the governor’s office.
  • To oppose any form of corporate income taxes or other business taxes that discourage capital investment and therefore job creation.
  • Support limiting Nevada state government spending to the rate of population growth.

Quote:

“Proponents of the margin tax are instead deceptively billing it as the Education Initiative, saying the money raised would go into Nevada’s Distributive School Account. It’s important to note, however, that even if the tax passes, legislators wouldn’t actually have to spend more on education. Indeed, total education spending could even decrease.“ – Chantal Lovell, Nevada Policy Research Institute
Read More Here

Save the Date

Margins Tax Initiative Breakfast
with Curt Anderson – CPA

February 18, 2014

Las Vegas Country Club 

Mr. Anderson will present 
pertinent facts about the
Margins Tax as well as 
examples on how it 
would affect different 
types of Nevada businesses. Mr. Anderson is currently owner of the CPA firm Fair, Anderson & Langerman. He has 32 years of career experience. 

For more information 
call (702) 952-2456

______

Keystone Annual
Luncheon

April 9, 2014
Silverton Hotel

For more information 
call (702) 952-2456

 


 

in Political Update /by webmaster/#permalink

Latest Updates

  • Political Update – July 28, 2020
  • Political Update – July 21, 2020
  • Political Update – July 14, 2020
  • Political Update – July 7, 2020
  • Political Update – June 30, 2020

Follow Us Online

Follow Us Online

Keystone’s Mission:

To recruit, support and advocate for candidates for public office who support private sector job creation, low taxation, a responsible regulatory environment, and effective delivery of essential state services.

Keystone’s Goals:

To focus on candidate support in state legislative races and the governor’s office.

To oppose any form of corporate income taxes or other business taxes that discourage capital investment and therefore job creation.

Support limiting Nevada state government spending to the rate of population growth.

© Copyright - Keystone Corporation - Wordpress Premium Theme by Kriesi