Only four state senators vote against governor’s margin tax lite

Only four state senators had the gumption today to vote against the governor’s margin tax lite, which taxes businesses based on their gross receipts in the same way as the proposal on November’s ballot, which was defeated by voters by a 4-to-1 margin.

The four were Republicans Pete Giocoechea, Donald Gustavson, Scott Hammond and James Settelmeyer. That means seven Republicans and all the Democrats voted for Senate Bill 252, making the final vote 17-4. It now goes to the Assembly, where its fate is unknown.

State Treasurer Dan Schwartz and Controller Ron Knecht jointly sent out a press release calling on the Assembly to reject the bill. Press release on SB252

“To propose a tax that has been explicitly rejected by Nevada voters displays a blatant disregard for the democratic process. The Governor has called for alternatives. Those have been provided. They should be considered along with reprioritizing several proposed expenditures,” said Schwartz.

Assembly member Michele Fiore sent out an email pointing out that SB252 has 1,811 unique tax brackets based upon gross receipts. (The state Constitution states: “The Legislature shall provide by law for a uniform and equal rate of assessment and taxation …”)

She noted that the unemployment rate is still 7.1 percent in Nevada and “the last thing the Legislature should be doing is taking money out of the private sector, where it’s needed to create jobs, and transferring it to the public sector so that government can continue to spend beyond its means.”

Nevada Policy Research Institute’s Executive Vice President Victor Joecks commented:

“The voters of Nevada made clear in November that they do not want to impose a gross-receipts business tax, yet today the Senate passed a similar tax. Unlike the 17 Senators who voted in favor of SB252, Nevada voters recognized that raising taxes on businesses that are struggling or even losing money will only hurt families and parents throughout Nevada.”

Actually, as a survey reported by NPRI points out, Nevada voters apparently aren’t paying any attentionThe poll, conducted by Google Consumer Surveys in March, found 89.4 percent either did not know Sandoval supports the largest tax increase in Nevada history or mistakenly thought the governor supports keeping taxes low.

Gov. Brian Sandoval has said the so-called business license fee based on gross receipts will eventually rake in $250 million a year. The Nevada Registered Agent Association commissioned a study that says his figure is off by $65 million. NRAA Study

When Texas launched its margin tax it was expected to bring in $5.9 billion a year, but only netted $4.45 billion its first year and $4 billion the next.

Never mind that most of what Sandoval plans to spend on improving education will not work and has not worked when tried elsewhere.

Giocoechea

 

 

 

 

 

 

 

 

 

Gustavson

Hammond

Settelmeyer

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6 comments on “Only four state senators vote against governor’s margin tax lite

  1. Steve says:

    This was no surprise. Lets see what happens in the Assembly…I think Ralston and Sebelius will have a field day with them!

  2. Let the name calling begin.

  3. Winston Smith says:

    Socialist Party B strikes again…

  4. Well those four Senators deserve a medal. Let’s hope the few remaining conservative members in the Assembly have the stamina to buck the Governor and upset his apple cart!

  5. […] We’re just not taxed enough, our Republican Gov. Brian Sandoval insists, along with a majority of the state Senate, including all but four Republicans. […]

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