How many jobs would a margins tax cost Nevada?

Tesla Motors has now confirmed it has broken ground on land outside Reno for a potential site for a $5 billion lithium-ion battery factory that would employ as many as 6,500 workers.

According to a Las Vegas news account, in a letter to shareholders, Tesla CEO Elon Musk said the Reno site “could potentially be” the location for the so-called Gigafactory. “Consistent with out strategy to identify and break ground on multiple sites, we continue to evaluate other locations in Arizona, California, New Mexico, and Texas,” Musk wrote.

Tesla Motors electric care

In fact, this past weekend the Reno newspaper reported work at the site had stopped, and this was confirmed by a developer of the site.

This is August. What possibly could Tesla officials be waiting on?

November perhaps? That’s when Nevadans will decide whether to impose a 2 percent margins tax on all businesses grossing more than a million dollars a year. The money — an estimated $800 million a year — supposedly would fund education. The tax would give Nevada an effective corporate income tax rate on profits of 15 percent — the highest in the West and nearly double California’s business tax rate of 8.8 percent.

The most recent study of the tax’s impact for Nevada Policy Research Institute by Beacon Hill Institute at Suffolk University said it would destroy 3,600 full-time-equivalent private sector jobs.

Anyone care to add in the jobs that will not come to Nevada as result of such a tax? Perhaps we should start the count at 10,000 jobs and see where it goes from there.

12 comments on “How many jobs would a margins tax cost Nevada?

  1. Steve says:

    Educrats are freaking right now.
    All their gloom and doom about Tesla NOT breaking ground in Nevada because of the lack of “quality” students produced by Nevada schools is bullshit.
    First we spend only about $1000 less per pupil per year than California and while California is ranked second for producing college ready students Nevada is ranked 25th on the same list.
    In 2011 Nevada actually spent more than California by about $600 per pupil per year.

    They DO NOT need more money to continue their improvement, they need more time and they need to keep using the tools they have obviously been using to climb out of the bottom. Nevada schools have been improving greatly.

    Ranking in college ready students.
    http://www.usnews.com/education/best-high-schools/articles/2014/04/21/how-states-compare-in-the-2014-best-high-schools-rankings

    2011 info from Colorado note where California and Nevada rank in spending.

    Click to access CQ2014%20State%20Comparison.pdf

    US Census info, pertinent info is on page 25 for per pupil per year spending issued 2014.
    The lartest data is for 2012. Proving Nevada and California actually seesaw in per pupil per year spending.

    Click to access 12f33pub.pdf

    There is no need for more money, especially via a very poorly conceived ballot initiative like question 3.

    Elon Musk is playing it close to his chest, if we were to take the liberal view, we should be angry and envious of Musk for hiding all of this stuff away hoping to get the best deal he can, instead of being happy that he is pushing forward with a new approach for a very old technology.
    See Baker Electric:
    http://www.popularmechanics.com/cars/jay-leno/vintage/4215940

  2. Athos says:

    When will the world admit that when there is no accountability for spending, there is never enough money.

    There has to be (as much as I’m loathed to say it) “skin in the game”. Elon doesn’t have a printing press to bail out his failures (not that Nevada has one, either!). CCSD? It’s not their money, so what do they care? Just hire another Rocha (and a few more illegal aliens) to oversee English as a 2nd language program!

    And that’s the brainstorm from supposedly educated women!

  3. iShrug says:

    Tesla Motors might not be so great for Nevada. As you pointed out in your post of 3/23/2013:
    “Musk symbolizes the Obama entrepreneur — someone who relies on government to make their riches as opposed to the marketplace,” the Western Center for Journalism observed. Add Nevada to the list of government suckers.

    Tesla doesn’t appear to be worthy of all the federal loan guarantees it has received. As for jobs, Solar City brought its employees with them from the Bay Area. How many of the anticipated 6500 jobs in Tesla’s lithium ion battery factory would be filled with Nevadans?

    Don’t get me wrong, I completely oppose the margins tax, and I believe it would discourage businesses from locating in Nevada. However, I question whether any company that depends on taxpayer support should be encouraged to come to Nevada. I wonder whether Tesla would be receiving money from our state’s Catalyst Fund.

    I’d love to see companies locate their operations in our fine state: legitimate businesses that don’t require us to prop them up and wind up costing us when they shutter.

    Is there another example of a company which wants to set up shop here and hire Nevadans–one not involving Elon Musk?

  4. You can bet there will be Catalyst Fund money on the table.

  5. Steve says:

    The state money is competing with other states money. It’s inevitable. Think about the Tesla plan, they are installing charging stations along major routes and even automated battery swap stations for those who do not wish to wait for the battery to charge.
    Baker Electric and Owen Magnetic did much the same and they were both fully viable until very cheap pump gas came along. As we all know cheap pump gas is a thing of the past and the costs involved with electric cars is coming into line with the costs of internal combustion.

    We will still need gas powered vehicles for off grid travel and heavy transport.
    Gasoline will be around for a long time to come, we will just be using a lot less of it.

    Tesla and Via Motors are the two outfits, I believe, which have the best models for the future of transportation.

  6. Winston Smith says:

    Big Government + Big Business = Big Fascism

  7. […] news that Tesla Motors had built an earthen pad in an industrial park east of Sparks for its new  $5 billion lithium-ion battery “gigafactory” that would employ as many as 6,500 workers was a statement by Tesla CEO Elon Musk about what he […]

  8. […] news that Tesla Motors had built an earthen pad in an industrial park east of Sparks for its new $5 billion lithium-ion battery “gigafactory” that would employ as many as 6,500 workers — was a statement by Tesla CEO Elon Musk about what […]

  9. […] news that Tesla Motors had built an earthen pad in an industrial park east of Sparks for its new $5 billion lithium-ion battery “gigafactory” that would employ as many as 6,500 workers — was a statement by Tesla CEO Elon Musk about what […]

  10. […] news that Tesla Motors had built an earthen pad in an industrial park east of Sparks for its new $5 billion lithium-ion battery “gigafactory” that would employ as many as 6,500 workers — was a statement by Tesla CEO Elon Musk about what he […]

  11. […] news that Tesla Motors had built an earthen pad in an industrial park east of Sparks for its new $5 billion lithium-ion battery “gigafactory” that would employ as many as 6,500 workers — was a statement by Tesla CEO Elon Musk about what he […]

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