NEVADA - WHEN WILL THE CHAMBER LEARN?

Submitted by: Myke

There They Go Again

Las Vegas Chamber Providing Political Cover for Another Tax Increase

Dear Fellow Keystone Members and Conservatives,
We once again find ourselves in another major tax battle this session in Carson City.  In fact, it was reported that the Las Vegas Chamber of Commerce is active in trying to trade higher taxes for long-term spending reforms.  The Las Vegas Sun reported, "(The Las Vegas Chamber of Commerce says) that a tax hike might be necessary, but support for a tax hike would be conditional on changes in pensions and health benefits and local government collective bargaining rules."    
Only that quote isn't from a recent issue of the Las Vegas Sun, rather it's from a May 24, 2009 article that discussed how the Las Vegas Chamber of Commerce gave cover to legislators to raise payroll taxes by nearly 100 percent.  Those massive tax hikes hit Nevada job-providers at a time while they were already in the midst of this prolonged recession.   So, what happened?  The Democrats got their tax increases with the help of large majorities in the legislature ... as well as a handful of Republicans to ensure a veto would be overridden.  And as for long-term spending reforms?  Well, you be the judge.  Tell us if you believe serious changes were made to collective bargaining and prevailing wage laws over the past two years ... or if major, long-term liabilities in PERS were provided.   
Now, the Las Vegas Chamber of Commerce is back at work in the 2011 legislative session.  They recently sent a letter to their members spelling out what they believe to be a need - once again - for tax hikes, but only if Democrats in leadership agree to long-term reforms in collective bargaining, salaries and benefits.  Given the track record of what occurred last session, will self-described, fiscal conservative legislators fall for it again?  You just read the 2009 quote above, and here is what the Las Vegas Chamber of Commerce head of Government Affairs sent to their members last week:

 

"Although it is not clear what the Legislative budget committees will recommend, our view has led us to believe additional tax revenue may be necessary.  However, let me be clear: The Chamber's willingness to support additional tax revenue is absolutely dependent (their emphasis) on the passage this year of significant and meaningful reforms that will fix systemic problems that are plaguing our state."

 

We hope we can count on the Chamber to keep their word this session when they emphasize the words "absolutely dependent" in their conditional support of higher taxes.  In the meantime, Keystone Corporation continues to stay resolute and consistent on the issue of taxes.  Revenue to state government is low because the job-providers of Nevada have been crushed by this recession.  Further harming our fellow Nevada businessmen and women in their ability to make money, invest in new goods, services, jobs and output will NOT help increase government revenues.   
It will take real, sustained economic activity and growth to start filling government coffers once again - and Keystone stands with Governor Brian Sandoval and our conservative legislators in advancing this agenda.  If collective bargaining, prevailing wage and long-term liabilities from public employee pay and pensions are causing problems (and we believe they are), fix them.  Why does the private sector have to negotiate another massive, job-killing tax hike in order to fix broken public systems?  It makes no sense. 

 

"Raising taxes on business? That means layoffs, and that's unacceptable." - former Nevada Governor and current Keystone Board Member Bob List, Las Vegas Sun, May 7, 2009

 

At the time Governor List gave this quote to the Las Vegas Sun, Nevada unemployment stood at 12 percent.  One year later, in May of 2010, Nevada's unemployment sat at nearly 15 percent. 

 

Thank you for taking the time to read and consider this message.  Whether we again face hundreds of millions of dollars in higher taxes over the next two years is absolutely dependent on your full attention during these final six weeks of the legislative session.

Sincerely,Keystone Corporation