It is a real disgrace but we are suffering a multi million dollar ad campaign, or should I say lie and deceive campaign against the amendment, Nevada ballot measure, question #3.
I will try to add some reality to the actual question and try to dispel the most common lies and deception. Most of the talking points can be found at their website, Coalition to Defeat the Margin Tax Initiative.
- The tax is a small, contrary to the claim, “huge,” in the lies. 2% is a small tax.
- The tax is only calculated on the gross sales if the company wants to file that way. Even then, it’s 70% of 2% or 1.4%. Not all so huge.
- If the business decides to, they can claim tax only on proceeds after subtracting cost of goods sold (and that includes labor/payroll costs). In other words, a business that is making millions in sales but little or no profit will have little or no tax since cost of goods sold will be almost as much as gross sales.
- The money collected will be put in the State Distributive School Account, to be distributed in a manner provided by laws that already govern those funds. There is no risk that the funds will not go to the school district.
- Few if any businesses will have to close or relocate because of this tax. However, if the companies elect to move rather than repaying the community that supports them, then I say good riddance to bad rubbish.
So much for the down side of this ballot measure. Let’s now consider the good:
- It is in the state’s best interest to decouple the school system funding from our property taxes. The way the system works now, those poor communities where property taxes are low have the lowest funding for their schools.
- Getting away from the destructive notion that the rich get a free ride in Nevada because we don’t expect them to pay their fair share in income taxes, is a good move in the right direction. After all, this tax is only for businesses with more than $1 Million in revenue.
If I’ve missed anything here, go right ahead and make your case in the comments below.