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Impotent Taxation: Why Nevada Can’t Have Nice Things

16 Monday Apr 2018

Posted by Paul Kiser in About Reno, All Rights Reserved, Business, Conservatives, Crime, Donald Trump, Economy, Education, Entertainment, Ethics, Government, Government Regulation, Higher Education, History, Honor, Housing, jobs, labor, Life, Management Practices, Nevada, parenting, Politicians, Politics, Pride, Public Image, Public Relations, Real Estate, Recreation, Reno, Taxes, Travel, United States, Voting

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Education, gaming, mining, Nevada, property tax, schools, taxation, taxes, underfunded, Washoe County School District

Nevada, as a community is not pretty. In fact, it is probably the ugliest State in the nation when it comes to the ‘American Dream.’ Don’t tell that to one of the few citizens (25%) born in the State. Hardcore Nevadans are almost cult-like in the fondness of a State of mostly sagebrush and blowing sand. What Nevada can’t figure out is that it takes money to run a State, and that requires taxes. Nevada doesn’t believe in taxes, they believe in being a failure.

Proud to be the worst…at everything

Nevada Sucks And Has the Rankings to Prove It

Nevada ranks #3 in violent crimes per capita. In education, Nevada is the worst State according to USA Today. Of the best States with the best quality of life, Nevada ranks 43 out of 50, and in the area of social environment, it ranks dead last. Nevada has the 46th worst in the unemployment rate. These aren’t a new downward trend in rankings. Nevada is consistently at the bottom of these rankings.

Nevada is a State everyone points at as the example of what not to do. Companies don’t want to move to Nevada because of the crime, poor education, bad quality of life, which makes unemployment higher.

Nevada Taxation:  Where Rich People Come For a Free Ride

Nevada can’t figure out that it has a taxation problem. More taxes, better schools, lower crime, better quality of life, etc. But Nevada isn’t run by citizens. Nevada is run by the beasts of mining and casinos. It is sad to see how normal citizen rush to defend the monster that feeds on them.

Mining is digging up Nevada’s one-time resources and taking them out of State. Mineral corporations account for over $3 billion dollars of Nevada’s gross domestic product, but mining’s contribution to the State revenues is only one percent. For comparison, Nevada’s cigarette tax contributes four percent to the State budget.

Gaming is the 363 kg gorilla of Nevada politics but pays minimal taxes. The ‘Gaming Tax’ is a tax levied on the winnings of their customers. The ‘Live Entertainment Tax’ is added to the cost of admission. The ‘Room Tax’ is added to the hotel invoice to the customer. The gambler/customer pays the tax, not the casino.

Casino owners like Sheldon Adelson don’t pay income or corporate taxes. They are reaping the money, but not supporting the State of Nevada.

Nothing Else Works

Nevada is the State of blind voters and boot-licking politicians. It is a State that will do anything to avoid fixing the real problem if the solution would impact corporations or the wealthy. The State is has tried everything but the one solution that is obvious:  raise taxes on corporations and the wealthy.

The Silver State is likely to be hit by a perfect storm of economic destruction. The upcoming recession will catch Nevada completely unprepared. Housing prices far exceed the wage-earning potential of the middle class. As jobs collapse, housing will collapse. Underfunded schools, law enforcement, and government services will only get worse.

There is no positive response Nevada will be able to make to an economic downturn. Nevada will become a third world State and the politicians will respond by doing the wrong thing…cutting desperately needed taxes on corporations and the wealthy.

This is why Nevada can’t have nice things.

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