The state of Nevada penalizes businesses for hiring people. It’s called the payroll tax. The more jobs you create, the more people you put to work, the higher your penalty.
Back in 2005, state Sen. Bob Beers (R-Las Vegas) successfully negotiated a temporary reduction in this fine employers are nailed with for giving people jobs. But unless the Legislature votes to extend it, which Democrats are already saying “nyet” to, those employers are going to be hit with a tax hike next year to the tune of $28 million.
As if business activity in the state isn’t down enough already.
This is different from the other tax cut proposed in Gov. Jim Gibbons budget: elimination of the per-branch fine on banks which dare to open up additional locations which might be more convenient to Nevada citizens. Failure to eliminate that fine (fee, tax, whatever you want to call it), means their existing tax burden will remain the same.
But make no mistake, unless the Democrats make the Beers’ tax cut permanent, it will result in a tax HIKE. And no Republican should vote for any bill or budget which raises taxes. And any budget bill which does not continue the Beers’ tax cut is a tax hike. Republicans, especially those in the Assembly, should state categorically, right now, that they will NOT vote for a budget which doesn’t extend the Beers tax cut. Period.
Indeed, Sen. Beers should be leading the charge on this one.
Posted on April 3rd, 2007 by Chuck Muth
Filed under: Nevada
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