Higher sales tax called harmful to economy

Gov. Jim Gibbons continued to beat the no-new-taxes drum Friday, and was joined by a Henderson boat retailer who said that with sales and prices down along with the economy, the government sees more money from his business than he does.

Dan Boyle, who owns Proshop Motorsports and Marine, called the state "my silent partner" and said calls to increase the sales tax in order to make up a tax revenue shortfall would hurt already wounded businesses.

"That just slows down the purchase cycle again," he said at a press event arranged by Gibbons' office. "We don't have jobs unless we're selling stuff to customers."

Gibbons has proposed cutting salaries of state workers, teachers and university workers to meet the budget gap while preserving public jobs.

"Taxes do one thing -- they suppress an economy," Gibbons said.

"When we increase business taxes, as is being suggested by the Legislature, we're taking money away from this business and every employee here.

"My goal is to balance the state budget without harming small businesses around the state of Nevada."

In a healthy economy, Boyle said, his store generates healthy profits. But with fewer buyers, he's lowered prices, and that's where his complaint comes in.

For example, the purchase of a Waverunner FX Cruiser for $13,195 nets about $600 profit for the store -- and about $1,000 for the state. A Wakesetter 23LSV boat, marked down to $59,975, nets about $2,200 in profit and $4,500 in sales taxes for the state.

He urged state leaders to enact a sales tax holiday, or at least a half-off sales tax day, to stimulate the economy.

"We're the ones who're taking the risk here, and yet they're taking more and more of what we generate," Boyle said.

Contact reporter Alan Choate at achoate@reviewjournal.com or 702-229-6435.