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Gaming analyst argues higher taxes would hurt industry
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CARSON CITY-- A gambling analyst says an initiative to raise the top tax rate on Nevada's highest earning properties is not economically sustainable by the industry and would lead to thousands of direct and indirect job losses.
Bill Lerner of Union Gaming also says Nevada's casinos pay a greater portion of the state's budget than in any other gambling jurisdiction in the country.
A ballot initiative filed last week by a group headed by conservative businessman Monte Miller seeks to increase the top tax tier to 9 percent from 6.75 percent on casinos that make more than $250,000 a month in gambling revenue.
Lerner predicts if enacted, it could result in more than 7,500 lost jobs and stymie job growth in the state.
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What some of you dont understand is that most other states with huge tax rates on casinos also limit the # of casino liscenses given out..therefore creating a monopoly. Believe me these corperations wouldnt pay the 20-30% tax rates in these other states if they knew there would be more competition.
The problem with the gaming analyst's recommendations is that NJ currently at number 2 and PA currently at number 3 (in casino revenue's) and about to take over NJ, have higher taxes. The northeast has money I grant this, but it is hard to disprove PA's huge bounce with higher taxes kills the industry, especially in PA where gaming started not so long ago. Remember, this is a state that just started also on tapping into it vast quantities of natural gas as well(although they did tap into it before, just not as much). And that state taxes gas companies higher than we tax mining companies.
In fact, NV barely taxes anybody else, so of course the casino's pay more than anybody's else state budget. Guess what, there is one state who gets most of their tax revenue from oil. What a surprise. There is another state that gets most of their state income from tourism. So the second point doesn't even make sense considering each state normally has an industry that makes up the most of that budget.
As for lost jobs, that is not the case. If people can spend money, there is no logical reason why you would lose jobs. If people do not have money to spend (because profit > everything else), then and only then would there be less jobs as there would be less revenue coming in. Taxes happen after revenue streams come in, not before. So I dare him to explain how the taxes would lose 7600 jobs.
Here we go the excuses and bull is already flying. Nevada casinos pay a greater portion of the states budget than any where in the country! No kidding maybe because we have the most casinos than anywhere in the country? New jersey gaming tax is more than here since it started in 1978! That is 34 years and the casinos from here opened in other states and pay way more gaming tax than here. Look at the money they saved to buildt elsewhere, all the time threatening our law makers "we will have to lay off workers" if you raise the gaming taxes. Time for them to pay up here where they started. and quit crushing any lottery effort, I think we should have for education money! adelson and Wynn are paying 30 to 40 percent gaming taxes in Macao,
WAKE UP!
And yet those same companies have casinos in states like Missouri and Louisiana that not only have a much higher gaming tax but a state tax to boot.
Lets change the rules of the game, right in the middle of the game. Of course certain players will get exemptions. Isn't that the new way that fairness is dolled out? If you support Reid and Obama, youll probably get an exemption, Adelson will probably be taxed twice and audited 10 times both his business and personally. MGM will get exempted as will Harrahs, oops, RIP Harrahs, Ceasars Entertainment
Nine percent would still be the lowest casino tax in the country. This is a no-brainer and long overdue.