Updates

September 3, 2019
03 Sep 2019

Political Update – September 3, 2019

Super Majority Vote Requirement Ignored by Democrats

Heidi Gansert
Nevada Business Magazine

September 1, 2019

In the final days of Nevada’s 80th Legislative Session, the Democrat majority in the Nevada State Senate and Assembly wielded their power to pass Senate Bill 551 (SB551) which raised Modified Business Tax (MBT) rates beyond their scheduled July 1, 2019 levels using a new simple majority voting threshold of 50 percent plus one vote. This vote was in direct conflict with the two-thirds supermajority requirement in Nevada’s Constitution.

The two-thirds vote has been used for extending taxes like the 2009 legislative session’s “sunset” taxes, for increases in license fees, room taxes and property taxes. Simply put, the two-thirds supermajority vote provision has not been ignored, rather it’s been respected and upheld for decades. In times when a single political party controls both houses of the legislature and governorship, the two-thirds supermajority vote provision in Nevada’s Constitution for increased revenue is the sole check on the growth of taxes and government.

How Will This Affect You?

The simple majority vote for SB551 created a new and dangerous precedent to increase taxes and fees as well as remove tax credits and exemptions.

Now, with a simple majority vote, you could face increased property taxes on your home by the removal of the 3 percent statutory cap, you could be taxed on life-saving prescription drugs like insulin and you could be taxed on your electricity, gas and water. For businesses, the Commerce Tax could affect more businesses with the elimination of the MBT tax credit, inventories could be taxed and much more.

The Democrat majority forced this vote for two reasons: to establish a much lower threshold to raise taxes and to secure a greater revenue stream to support continued expansion of government. This vote was not about filling a budget hole or shoring up a revenue shortfall.

During these robust economic times, legislative fiscal staff confirmed there was over a $100 million surplus of unallocated funds available when the 2020-21 budget was finalized in late May of this year. The total taxes raised by SB551 were forecasted to be less than this $100 million surplus. And, recently, Governor Sisolak confirmed no budget hole would be created if the revenue from SB551 was eliminated. Resetting the tax voting threshold to a simple majority was critical to Governor Sisolak and his Democrat colleagues because they substantially changed the trajectory of the cost of government by passing legislation to allow collective bargaining for state employees, by requiring higher prevailing wages for school construction, by increasing the minimum wage and more.

*IMPORTANT*

Quote of
the week

 


Quote:

“The Democrat majority forced this vote for two reasons: to establish a much lower threshold to raise taxes and to secure a greater revenue stream to support continued expansion of government. This vote was not about filling a budget hole or shoring up a revenue shortfall.”

Heidi Gansert

COMMENTARY: Right-to-work law boosts the Nevada economy

Mark Mix
Special to the Las Vegas Review-Journal

September 1, 2019

Nevada’s right-to-work is simple: It means no worker can be forced to join a union or pay union dues to get or keep a job. It’s basic common sense. And given the history of Big Labor’s power in Nevada, some find it surprising that the state’s had a right-to-work law for 66 years.

Right now, millions of workers around the country are forced to pay dues — or be fired — because they have the misfortune of being located in one of 23 states that do not have a right-to-work law. And every year, these workers cough up billions of dollars in forced union dues to union bosses just to have a job and feed their families.

This is just plain wrong and un-American.

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 Mission:

• 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.

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