To the editor:
In his letter to the editor, Richard Pratt states, “And yes, the margins tax is a horrible idea” (“Margins tax,” Oct. 8 Review-Journal). Mr. Pratt understated just how bad the Question 3 ballot initiative actually is. The margins tax is far worse than horrible; it is fatally flawed.
As written, the tax creates a 1.4 million percent tax bracket in the state of Nevada. Yes, you read that right. How so? Businesses with $1 million or less in revenue are exempt; however, there is not a $1 million revenue exemption for all businesses. Instead, this $1 million is a threshold that creates a financial cliff. If a business makes one additional dollar beyond $1 million, it would owe a margins tax of 2 percent on the entire amount.
After taking the standard deduction of 30 percent, the business would owe the 2 percent margins tax on the remaining $700,000 in revenue, which comes to $14,000. In other words, the first dollar of revenue over $1 million creates a tax bill of $14,000, which is a 1.4 million percent tax on that dollar. Additional revenue after this dollar is then taxed at the stated rate of 2 percent after allowed deductions.
If the first $1 million in revenue was truly exempt, and the tax applied only to revenue above that, this ballot question might be worthy of discussion. But as written, it is worse than horrible and should be defeated.
JOHN M. MCGRAIL
Raising the wage
To the editor:
I have to respectfully disagree with Vice President Joe Biden, who in an Oct. 6 speech said that raising the minimum wage would increase spending (“Biden pushes minimum wage increase in Vegas stop,” Oct. 7 Review-Journal). He said the increased wage would all be disposable income to be spent at stores, restaurants and other business, which would benefit all Americans.
However, we all know that a great percentage of the money will be sent to other countries to help support family and friends of the large percentage of undocumented workers making the minimum wage. They take the littlest amount possible out of their pay by turning neighborhood houses into barracks, with several vehicles taking up all the street parking. Several billion dollars of this “disposable income” will be sent by Western Union and other means out of the country to support other people, who will not spend these dollars anywhere near American stores, restaurants and other businesses.
As a hard-working, educated American, I shouldn’t have to pay more for a good meal at a fast-food outlet, so that the undocumented worker can have more money to send over the border or so that the dropout too lazy to get a basic education can get a better apartment or car without the skills to get a better job.
Minimum wage is for young Americans to get business experience while they pursue an education, where they will ultimately compete for better-paying careers. I do not believe minimum wage should be a lifetime support wage.
Stop attacking Dotty’s
To the editor:
It’s hard to believe that Clark County Commissioner Steve Sisolak and his band of bumbling idiots are going after Dotty’s again (“Clark County takes aim at taverns,” Oct. 8 Review-Journal). When reading this story, you ask yourself: Haven’t we been down this road before?
Mr. Sisolak, leave these people alone. They pay their taxes, they employ people and provide a different place to gamble for those who prefer an alternative to a casino. It really seems the only people who have a gripe with this alternative are Clark County commissioners and those who operate large casinos.
Mr. Sisolak, you could better spend your time asking the big boys to pay more taxes, so that we can build more schools and give teachers a raise. Or how about a lottery? You know as well as anybody in Clark County that a lottery would work, but your friends in high places nix this idea, and you turn your back on it. You drive the bus, Mr. Sisolak, but the people of Clark County aren’t on it.