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Stimulus bill amendment could hurt Las Vegas

'Legitimate' travel for business at issue

An amendment to the $787 billion economic stimulus bill could have some unpleasant fallout for Las Vegas.

Specifically, it calls for the government to decide what is or isn't legitimate business travel.


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  • The amendment by Sen. Chris Dodd, D-Conn., calls for the secretary of the Treasury to write rules that would define "excessive expenditures" on behalf of companies that will or have already accepted taxpayer money, referred to as TARP funds.

    That could make life more difficult for resorts in Las Vegas, which host more than 22,000 business meetings annually that directly sustain about 43,000 jobs.

    "Having government in the business of micromanaging corporate travel patterns is a very dangerous trend," said Geoff Freeman of the U.S. Travel Association. "It is dangerous not just to travel, it is dangerous when it comes to stimulating the economy. It is the anti-stimulus."

    Jon Summers, a spokesman for Sen. Harry Reid, D-Nev., defended the amendment.

    "Nevada taxpayers agree that it is reasonable to ensure that a company that receives TARP funding uses it in an appropriate manner," Summers said via e-mail.

    When asked whether the definition of luxury the amendment calls for would include resorts such as Wynn Las Vegas, Palazzo, Bellagio or others on the Strip, Summers responded: "That's up to the secretary, who has oversight of the TARP funds."

    If the amendment holds up -- it was included in the final language of the bill -- it could be bad news for Las Vegas, which is home to numerous luxury resorts that cater to business travel.

    According to the Las Vegas Convention and Visitors Authority, meetings and events generate an estimated $8.5 billion annually for the local economy.

    They were the subject of heated discussion earlier this week when Las Vegas Mayor Oscar Goodman criticized President Barack Obama for singling out travel to Las Vegas as a symbol of wasteful corporate behavior that shouldn't be allowed, "on the taxpayers' dime."

    Freeman says Obama's comment is typical of a growing tendency of politicians to single out business travel when seeking to scold leaders of troubled corporations.

    In recent days corporations such as Wells Fargo, Goldman Sachs and State Farm have backed out of planned meetings in Las Vegas that would have generated thousands of room nights and millions of dollars in economic activity -- money that makes its way to the pockets of valets, bellmen, restaurant servers and taxi drivers.

    "There is a great fear in the marketplace. We think this has potential to make matters worse," Freeman said. "It is time for the politicians to stop grandstanding."

    Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-477-3861.

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    Shameonthem wrote on February 20, 2009 06:17 PM: You know, I would not be so upset if Obama practiced what he preaches. Just recently, Obama went to AZ. Every other President who has travelled there has always stayed at the Biltmore, which charges $1600/night for their suites. Instead, Obama stayed at the Montelucia which charges $4000/night!! Yes, all on OUR dime! He also sent a White House jet to pick up the senator who lost his mom so he could vote and also then returned him back to his states for the funeral....all on our dime. Practice what you preach, President Obama!


    Dagger2010 wrote on February 20, 2009 03:18 PM: Vegans who voted-in Barak Nobama can only blame themselves!!! That idiot told the bank CEO's and alike who took TARP funds (and who didn't???) to take their company excursions elsewhere, leaving Vegas out in the cold for years to come. Not to mention he considers Vegas too capitalist for his liking. Company recognition ceremonies build employee confidence, teamwork & moral. All of which is foreign to Nobama since he never had a job or worked for a profitable company. He's a PUNK and is now the HMFIC!!! Good luck Sin City, the shovel he has ready for Vegas is to bury you with!!!


    stevenp68 wrote on February 17, 2009 11:18 AM: Actually this only applies to companies seeking bailout money, and although I'd like more money here in LV, I think it would be irresponsible to give my money to companies to be spent frivolously. Yes, even here. I'm glad their making examples of the wasteful spending of executives who bleed companies into bankruptcy. They've been robbing dividends with their $100 million plus/yr bonus' to themselves for decades siphoning Americans money into their own pockets. Now the markets have corrected themselves to show the true value of publicly held companies, who only operate on the half-ass stewardship of these CEO's his only job is to sit on their boards and decide how much of a bonus their going to get this year and where the company will send them on vacation and how often. I know it kinda sucks LV, I'm a union hotel employee myself but in order to make life better you have to sacrifice. Besides Las vegas will be getting a more than fair share of the stimulus package it just wont be going to hotel CEO's directly.


    VegasTaxiDriverDotCom wrote on February 17, 2009 08:21 AM: ((When asked whether the definition of luxury the amendment calls for would include resorts such as Wynn Las Vegas, Palazzo, Bellagio or others on the Strip, Summers responded: "That's up to the secretary, who has oversight of the TARP funds."))

    Welcome to the United States of Communist Cuba. Factory workers and service workers better hope that the companies they work for are allowed by Obama and and the government to let their sales reps and public relations reps have meetings with their prospective customers at the Bellagio intead of the Motel 6, because if the sales-persons and executives of the company you work for are taking clients out to Mcdonalds for lunch instead of taking them out to nice restaurants, you are screwed, and you won't have a job very long.

    Obama and Geithner deciding what companies should spend money on and how much, is like me telling pilots how to fly jets, and I do no know how to fly. Should they be putting a lid on outrageous bonuses of millions of dollars per executive? Of course. But they are using that as a way to turn America into a Communist, or at least and anti-capitalist, country.

    I am sure it is okay to have meetings and conventions in Chicago or San Francisco, because that is where Obama and Pelosi are from, but Harry Reid is too busy kissing Obama's hand in order to stand up for us.

    If they decided that it is excessive to advertise on CNN and NBC, and companies should do radio ads instead because they are cheaper, then you would see the reporters on CNN and NBC covering the story differently, and more accurately.

    Talking about excess, tell Obama to trade in that limo for a Prius.


    joshua wrote on February 17, 2009 05:46 AM: Nice alias Jekyl. Typical republican, too much of a coward to use their real name. Such hypocracy, to spew ridiculous claims of oppression and control. This coming from the same mouths that cheer, "God hates fags!". The same people that drag gays and african-americans behind their pick-up trucks on deserted back-country roads. So demented are your views that even on the cusp of our inevitable demise you're still not willing to see this was all brought on by years of republican officials unwillingness to stand against frivolity and corruption of the wealthy elite. Yours and others stubborness and lack of insight alone has brought the greatest power in history to it's knees.


    jekyl wrote on February 17, 2009 03:04 AM: Las Vegas, I'm sure you're very happy to have voted for Obama and his Democratic minions. This is the perfect example of reaping what you sow.

    Dodd and the Socialists now in power have set themselves up at arbiters of all wisdom and morality. They have been desperate to tell the American people how to live their life, and you can expect this kind of thing to occur many more times, as long as they are in power.

    Think about it the next time you Vote Democrat.


    joshua wrote on February 15, 2009 07:34 AM: I'm sure all of you lined up in droves to pass articles 4 and 5 last year banning smoking in bars. Those propositions led to the closure of countless establishments across the valley. Small business owners statewide lost everything with one felt swoop of your pens. Why is it now, when the fatcats cry injustice you rally to defend them? How long before you all realize trickle down economics DOES NOT WORK! $500 million less in executives' pockets is $500 million more in ours. It's time we took back what was rightfully ours all along. That all begins with supporting those who are acting on our behalf.


    medeak wrote on February 15, 2009 06:43 AM: John Ensign is the bad guy here. Voted AGAINST the high speed train from LA. Vegas is getting the BIGGEST benefit of stimulus bill!


    Kick us when we're down wrote on February 14, 2009 10:40 PM: Oh my, harry keeps making it look easier and easier to defeat him in 2010. For all you union members who got Obama elected and have taken care of "stinky" in the past --- remember this when the conventions dry up and more jobs are lost.

    Nice to know that harry is looking out for Nevada. But wait, that isn't who he is looking out for. Never has, never will. Harry went from a reported mob lawyer to one of the wealthiest Senators in no time at all. Morals, integrity and loyalty to his constituents has never been of great concern.

    In one fell swoop, harry and Pres "O" have done great harm to our main source of income. What a shame he made sure Yucca mountain won't happen -- that would have meant many jobs. Then again, they both have shown not to be men of their word --- perhaps Yucca will happen.


    shellie wrote on February 14, 2009 10:26 PM: How sad. The town kissed Obama's butt during his race for president. This president did anything to get elected then turned around and kicked everyone in the face! I glad he is not my president. Las Vegas was nothing but nice and look how Obama thanks the town.


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