Las Vegas legislator proposes business tax
CARSON CITY -- A Las Vegas legislator plans to introduce a bill at the 2011 Legislature for a broad-based business tax to reduce an expected $3 billion state budget shortfall.
Democratic Assemblywoman Peggy Pierce wants the state to impose an income tax on businesses with exemptions that would allow smaller businesses not to pay anything. Nevada needs a taxing system "like those in more than 20 other states" since the current system has not produced the revenue needed to fund education and government properly.
Convincing legislators to approve her plan will be a "rough road," she said Wednesday.
The Progressive Leadership Alliance of Nevada, a liberal-leaning organization that represents unions and other groups, has been advocating a business profits tax as high as 7 percent and wants to change how the gold mining industry is taxed.
Pierce, long associated with Culinary Local 226, is resources coordinator for the United Labor Agency of Nevada. She has served in the Assembly since 2003.
Her move to add a business tax was criticized by Right Pride, a conservative, gay, pro-business organization in Las Vegas.
"If Peggy Pierce believes that taxing those businesses surviving this economic crisis will put people back to work, she is sadly mistaken," said Mark Ciavola, the Right Pride president.
Nevada employers have cut 200,000 jobs in the past three years, and the state's unemployment rate is 14.2 percent, highest in the nation.
The Nevada Economic Forum determined last week that the state will have $5.33 billion in revenue over the next two-year budget cycle, which is about $1 billion less than current spending. But state agencies have requested $8.3 billion in spending.
In the 2009 session, lawmakers increased the sales tax rate by 0.35 of a percentage point. Everyone, including businesses, pays the higher rate. State workers also have been required to take one unpaid furlough day per month.
But these changes will expire June 30, unless reauthorized by the Legislature. Gov.-elect Brian Sandoval has said repeatedly he will veto any bill to reauthorize the increase.
Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.
