EDITORIAL: Question 3 counters country’s tax-cutting trend
Las Vegas Review-Journal
If Nevada were really trying to catch up to other states, if it were really serious about creating an environment for future prosperity and opportunity, then Question 3 on November’s ballot would seek to cut taxes, not raise them.
Question 3 is the 2 percent margins tax initiative placed on the ballot by the state teachers union. If voters approve the question, an estimated $750 million per year would be taken out of the recovering private sector at the expense of business job creation, just as Nevada’s economic development efforts are becoming better coordinated and more productive.
The mere prospect of such a punitive tax becoming law in Nevada puts the state at a competitive disadvantage in its pursuit of new industry and investment. Across the country, states are raising the stakes in luring companies — and fending off outsiders intent on plucking top employers — by cutting taxes.
— This month, Rhode Island’s corporate income tax rate fell from 9 percent to 7 percent.
— Also this month, Indiana’s corporate income tax rate fell from 7.5 percent to 7 percent. The rate will drop again next year, to 6.5 percent. Indiana’s personal income tax rate will fall from 3.4 percent this year to 3.23 percent in 2017, and the state abolished its inheritance tax.
— Last month, Ohio Gov. John Kasich signed into law several tax cuts, from deductions for small businesses to an income tax cut to an expansion of tax credits for low- and middle-income earners.
— Earlier this year, Wisconsin Gov. Scott Walker signed into law property tax cuts and income tax cuts.
— Last year, about 20 states enacted at least one tax cut. Nevada was one of them, approving a small-business payroll tax deduction.
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.