Even by swampy congressional standards, a letter signed by three Nevada Democrats to a local casino company reeks of demanding quid pro quo.
In May, 13 congressional Democrats sent a letter to Frank Fertitta, chairman of Red Rock Resorts. The signers, including Reps. Dina Titus, Susie Lee and Steven Horsford, urged Fertitta to “respect the rights of employees at Red Rock Resorts Inc. properties to form a union and collectively bargain.” That seems like little more than another poke in the eye from allies of the Culinary union.
But the letter took an unexpected turn. It started talking about tax policy.
In 2017, Republicans passed tax reform. In their haste — insert joke about “passing the bill to find out what’s in it” here — a drafting error changed the depreciation schedule for certain capital expenditures. Before the bill, companies could depreciate interior remodeling projects over 15 years. After the bill, businesses had to spread those expenses over 39 years.
The letter points out that Red Rock Resorts is seeking to revert that provision to its original form. The company is hardly alone. Hundreds of businesses — including Wendy’s, Best Buy and Target — have asked Congress to make the change. A bill to do just that has 169 co-sponsors. Titus, Lee and Horsford are among the 88 Democrat co-sponsors.
There’s not a policy link between the two issues, but there is a political link. The letter notes that Red Rock Resorts “is currently completing a $690 million renovation of the Palms Casino Hotel.” The drafting error in the new tax law is likely costing Red Rock Resorts tens of millions of dollars.
“We were disappointed, however, to learn that the company has refused to recognize the union at this facility, even after 84 percent of employees voted to form a union,” the letter reads.