Mining must pay its fair share

To the editor:

I was glad to see the Progressive Leadership Alliance of Nevada taking on the inequity of Nevada's mining tax (Jan. 16 Review-Journal). John Winthrop, the early American Puritan, once noted that "the rich and mighty should not eat up the pool." The mining industry has been eating up Nevada, raking up gross profits while leaving the state little to show for 100 years of exploitation and environmental degradation.

The mining industry likes to argue that it is unfair to pick on any particular industry for tax support. But the Nevada Constitution, written by-and-large by the mining industry, places a cap on mining taxes, a cap that has led to an absurdly low rate of mining taxation.

The mining industry also likes to argue that, if pressed for a more equitable tax rate, it might just move to another location. That is like the South African diamond industry threatening to move to Nevada. Gold fields, like diamond fields, are where you find them, and Nevada has gold.

Not only that, I don't think there is a country on Earth that lets its mining industries off with the low tax rate found in Nevada.

The way the mining industry wrote the Nevada Constitution, two Legislatures have to approve a mining tax change and then the public has to agree, a process that could take five or six years, time for the industry to buy enough political votes to defeat such a change. The system has worked for the mining industry for more than 100 years, but it can be overcome.

The current Legislature could, in special session, vote for a change. Then the incoming Legislature could ratify the change, and a public vote could then taken. In short, the system could be changed in a matter of a year or two. Unfortunately, our governor and public servants seem well-served by a strong mining lobby and large campaign contributions.

The Nevada mining industry will spend millions of dollars in court challenges and political donations to defeat any change in mining taxation. I say, bring it on. For each million dollars the mining industry spends to combat a fair tax, the state should extract another percentage point of taxation.

There is no reason for everyone in Nevada to be paying higher taxes than the mining industry. Nevada is currently very poor while the mining industry is pulling $6.1 billion from Nevada soil. What adds great irony to the situation is that most of Nevada's mining dollars go out-of-state and out-of-country. I'm with John Winthrop, I think that "the rich and mighty should not eat up the poor."

The Progressive Leadership Alliance of Nevada has my support.

EVAN BLYTHIN

BLUE DIAMOND

To the editor:

Your recent editorial on the mining tax suggests we should continue to allow mining corporations to export Nevada's wealth to foreign countries since we couldn't possibly be so heartless as to make them pay their fair share of taxes to Nevada.

No doubt this is music to the ears of mining's mercenaries, who dominate Nevada's political structure, but it's a lock for continuing the state's downward slide. Out of a $7 billion state budget, we've already cut $2 billion and are now looking at cutting another $1 billion. And this is in a state that is already 51st in Medicaid spending and 50th in public expenditures. If we don't find new revenue sources, we can look to any Third World country as a model for what we'll become.

The top five producing gold mines in the United States are in Nevada, and four of these are foreign owned. Nevada is literally sitting on a gold mine, but it is largely foreign owned and dramatically under-taxed.

Our valuable natural resources are being drained away, largely by foreign corporations, that are paying well under 1 percent to the general fund in taxes for the privilege. Great wealth is being exploited in our state, while a substantial source of revenue is being ignored.

Mining has had a lock on policymaking since before statehood (when they tore up the first constitution because they didn't like the mining tax). After 150 years, it's probably time they paid their fair share.

Bob Fulkerson

RENO

THE WRITER IS EXECUTIVE DIRECTOR OF THE PROGRESSIVE LEADERSHIP ALLIANCE OF NEVADA.