There has been a lot of discussion and debate about the tax proposals that are being introduced this session. With Republican majorities in two houses, it is both surprising and disappointing that we are seeing the largest projected tax hike in Nevada’s history.
The two most discussed plans are SB 252, Governor Brian Sandoval’s Business License Tax, and AB 464, the proposal from Assemblymen Paul Anderson and Derek Armstrong that would increase the tax on job creation (modified business tax).
There is speculation that people are afraid to bruise the governor’s ego by telling him that his tax plan is bad, even after Nevadans overwhelmingly opposed the very similar Margins Tax during the election. A great example of this was when the Las Vegas Metro Chamber of Commerce commissioned the well-respected Tax Foundation to give them their professional opinion of the governor’s 1.3 billion dollar tax proposal. In short, the Tax Foundation found that the governor’s proposal is not a good fit for Nevada. In response to this, the governor released a statement calling the Tax Foundation’s report, “utterly irresponsible, intellectually dishonest and built upon erroneous assumptions.” As a result the Chamber apologized to the governor for the tone of the Tax Foundations report and made a public statement that the two organizations are no longer working together.