Group Proposing Nevada Tax, Government Changes

From the Associated Press:

A study group appointed by majority Democrats in the Nevada Legislature is proposing sweeping changes to raise taxes and reshape state government to improve the quality of life in the state over the next 20 years.

A preliminary report due for discussion Friday by the 20-member Nevada Vision Stakeholders Group offers hundreds of goals — but few specifics about how to reach them. The legislation creating the group called for recommendations but left it to legislators to figure out how to change taxes and implement the goals.

Republican Gov. Jim Gibbons quickly dismissed the proposals to change Nevada's tax structure and diversify an economy now largely based on tourism and mining.

"You surprised?" Gibbons scoffed.

Gibbons vetoed a measure last year to allow the Legislature to spend money to hire a consulting firm to review Nevada's revenues and spending, and to work with a citizens group to create a plan to build a better state over the next 20 years.

Gibbons had predicted the results would include tax increases that will scare away businesses that want to relocate in the state.

"These companies already are bypassing Nevada because of the uncertainty about our future tax structure," Gibbons said. "It is affecting our ability to recruit businesses."

Nevada Renews Push to Poach Businesses From CA

In this economy, many states are beginning to play hardball in order to generate more revenue. A prime example is Nevada’s recently renewed ad campaign to “poach” business owners looking to move from California. According to one of their commercials business owners can “get the monkey off your back relocate to Las Vegas. No corporate income tax, no personal income tax and low workers compensation fees. Kiss California red tape and high taxes goodbye.” Check out the following article from the Associated Press on Nevada’s newest efforts to entice business owners.

Talk about kicking a neighbor while he's down: Nevada is spending $250,000 for an ad campaign that compares California legislators to talking chimps and tells business owners they can "kiss their assets goodbye" if they stay put.

It's the latest salvo in a generally friendly rivalry that's taken on a harder edge with both states among the recession's hardest-hit areas and desperately fighting to stay afloat — California recently had to issue more than $1 billion in IOUs to survive a prolonged budget crisis while trying to slash a $26.3 billion debt.

Nevada leaders paint their clever but biting campaign — aimed at California business owners considering a move — as simply a matter of helping the Silver State fight high unemployment and diversify an economy heavily dependent on struggling casinos and tourism. Nevada business advocates are pitting their state's low taxes against rising workers' compensation rates and fears of bankruptcy in California.

But there is clearly a certain amount of grim glee at getting under the skin of their Golden State counterparts. Las Vegas Mayor Oscar Goodman said he can't wait for the new ads and a chance to needle California leaders about picking off companies and jobs.

"It's going to drive them bonkers," Goodman said. "We're going to crush them."

He and others say they want to erect one billboard outside California's state Capitol building in Sacramento.

Las Vegas Legislators Propose to Tax Prostitution

Cities all over the country are being affected by the recession, and one of the areas hit the hardest is Las Vegas, Nevada. Although the city’s economy was booming in the late 1990’s and early 2000’s, it is not struggling to find additional revenue. As such, a local politician has suggested a tax on the world’s oldest profession – prostitution. Check out the article below that discusses the proposal, thanks to KXNT.com.

Senator Bob Coffin of Las Vegas believes Nevada could pick up two million dollars annually if it imposes a tax on prostitution. He's introduced a bill in the state Legislature that would charge patrons five-dollars tax for each session. He notes that the state Department of Taxation would be allowed to publish how much it took in, only it didn't identify an individual business. Some of the money would go toward an "ombudsman for sex workers." It would provide assistance to prostitutes who have complaints or are looking for another profession.