Nevada to get new motto, will replace "Battle Born" with "That's just how it works"

My CityLife column this week blows up the myth that a state corporate income tax would ultimately be paid by consumers through higher prices (to quote one elected official, "that's just how it works"), and I apologize if it's a tad wonky.

But I'm convinced that at least six and perhaps as many as nine people in the state of Nevada are willing to consider, with an open mind, some facts about Who Pays Taxes, as opposed to lazily relying on the pop-economics rhetoric that usually masquerades as discussion in Our Dumb Media.

Also, the column ends with the aforementioned state official admitting that, given the chance, she would vote for a state personal income tax (oh my stars and whiskers, heaven forfend, whoa Nelly, etc.) thus presenting an opportunity (as if one were needed) to remind everyone of my earlier -- oh, let's just call it what it is -- landmark, must-read examination of the impact a personal income tax would have on Nevada and Nevadans (a column that was also read by perhaps as many as six people).

As you will no doubt recall (right?), that groundbreaking analysis began like this:

If Nevada had applied a 6 percent personal income tax on individuals with adjusted gross incomes of more than $200,000 in 2007, it would have generated about $1.1 billion.

And since only 2.7 percent of Nevadans reported incomes exceeding $200,000, more than 97 percent of us would have paid ... nothing.

Now, I know what you're thinking: "C'mon Gleaner, why do you keep trying to dork everybody out with this icky nerdy tax noise? After all, with the state's tax structure so obviously unfair and inadequate, Rory Reid and Brian Sandoval will have to explain all of this stuff to voters on the gubernatorial campaign trail when they eagerly engage in a spirited, detailed, thoughtful and candid debate over tax policy. Shouldn't you just leave this sort of thing to them?"

You're probably right. Instead of trying to explain the effective burdens of a state corporate income tax, I should have written the customary year-end column wherein some subset of developments, events or phenomena is, by virtue of existing within the same arbitrarily constructed time frame, reviewed for posterity, but then gone with a meta twist on the formula so as to add, you know, a touch of alternative edge -- something along the lines of "Most Banal Year-End Review Columns that Mention John Ensign's Hilarious Collapse into Permanent Disgrace and Pathetic Insignificance as Something that Happened in the Year under Review."

Maybe later.

Comments

[Nevada Ned]

Good idea! It will be opposed by Sheldon Adelson and others in his social class. Adelson funds NPRI, whose ideological output is published by the RJ. So indirectly Adelson's minions dominate the discussion.

The legislature is pretty much controlled by campaign contributions, which come from the same people. So maybe a referendum would be the best opportunity, if enough funds could be raised to wage a credible campaign in favor of taxing those who have the ability to pay.

And, if I ever make $200K/year, I'll be delighted to pay 6% of it in taxes to NV.

[mike sloan]

I am all in favor of people who live here helping to pay the cost of governmental services from what they make, but a tax that exempts 97 percent of the residents doesn't do that. Everyone above a reasonable base, say $40,000, should pay something, with a graduated rate for those at the upper income levels. Everyone should have "skin in the game", giving them a right to complain aboutrunaway government spending like we have seen in California in recent years. If people want more "government" then everyone should pay. As to your first point, in 2002 when the Governor's Tax Commission was considering a gross receipt tax of one-quarter percent on business income above $500,000, we commissioned a study which showed that prices for the same products in states with both the gross receipts tax (at a much higher rate) and a corporate income tax were higher in Nevada than in any of the other states examined, including California, Washington, Arizona and Utah. Oh, one more point. Right after Nevada said no to gross receipts, Texas, with a Republican Governor, adopted it and that state is doing very well right now. So those who want to keep taxes as they are will need to dream up a a new lie. And isn't about time we stopped listening to people claim that higher taxes drive away new businesses -- for 50 years we have been among the lowest taxed states for non gaming businesses in the country but as we look around, where are all of the great new businesses that tax structure was supposed to attrach. Quality of life, a very good education system and a good work force are what attact good employers -- just look around the country.

[dave404]

Mike;

""Everyone should have "skin in the game"", should mean everyone, not just those making $40K+ a year! Yes, let ALL pay taxes and put their skin in the game!

Yes, let those who dropped out of high school and are receiving government aid pay taxes aside from consumer tax. Mandate that those who are here illegally, from Mexico predominantly, also put some "skin in the game." Let us end the welfare for babies game! No more Section 8 housing; no more welfare, no food stamps, no TFAN etcetera w/o the name of the father being provided to the state and, if under age, the name of the parents of both the grand fathers and mothers of the child! These are the people that should pay to raise the child! Leave the rest of us out of your having babies I can't afford insanity!

Texas oil = Nevada Gold. Tax 'em! Too, corporate tax is correct as cost of same good is same here as in neighboring corporate tax state.

Good education system? What/who is failing in the current system? We know it isn't Asians nor Caucasians! Black students are 4 years behind White students! Asian students are ahead of Caucasian students, and Black students are behind Hispanic students....who will speak to truth?! It isn't a money issue it is a cultural issue!

There will never, ever be an income tax in Nevada! Stop wasting time on an alternative belief or hope! Deal w/reality.