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Tax status hurts attracting out-of-state business, Gibbons warns
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MIKE STOTTS/LAS VEGAS BUSINESS PRESS
Nevada Gov. Jim Gibbons speaks Thursday at the Las Vegas Chamber of Commerce's roundtable discussion.
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Gov. Jim Gibbons, left, and Matthew Crosson, who will become the Las Vegas Chamber of Commerce's president in April, participate Thursday in a roundtable discussion on taxes. Gibbons said Nevada simply can't compete with incentives offered by rival states. MIKE STOTTS/LAS VEGAS BUSINESS PRESS
LAS VEGAS BUSINESS PRESS
The uncertainty of Nevada's future tax environment is hurting the state's ability to attract new companies, and fears of possible tax hikes are driving companies looking to move to pick other Western states, Gov. Jim Gibbons said Thursday.
The governor made his remarks during a roundtable discussion with members of the Las Vegas Chamber of Commerce at which he reiterated his no-new-taxes stance.
"Their greatest fear is not the education system, but the lack of predictability in taxes," Gibbons said of out-of-state industries that have considered moving here.
The perception that Nevada may end up with a broad-based business tax, or heftier existing taxes, has benefited competing Western states, he said. Many of the companies looking to flee high-tax environments, like California, are bypassing Nevada, he added.
"Right now, we are having a difficult time competing with Texas and, in some cases, Arizona and New Mexico," Gibbons said.
Incoming Las Vegas Chamber of Commerce President and Chief Executive Officer Matthew Crosson noted what higher taxes have done to other states.
"Nevada has its problems, but so do a lot of other states," Crosson said.
Crosson's selection to head the local chamber was announced this week. He is leaving a post as president and CEO of New York's Long Island Association.
Nevada's long-standing reputation as "a low-tax and low-government intrusion state" is at risk, and businesses looking to relocate are shying away, Gibbons warned chamber members.
"We have really never had this much unpredictability in Nevada," he said.
To boost diversification efforts, Gibbons will propose tax breaks for businesses that move to Nevada.
He said the Silver State simply can't compete with incentives offered by rival states, although he said rebating half of a new business's tax payments might not be out of the question.
"Fifty percent of something is better than 100 percent of nothing," he said.
Businesspeople attending the discussion expressed concerns about the status of the state's lagging public education system and dwindling university system funding.
BannerView executive Mark Cenicola asked what private enterprise should do to involve the general public in solving the state's budget crisis.
Never one to shrink from criticizing state legislators, Gibbons said the politicians viewed themselves as "intellectuals" and implied the business community might be able to come up with a better solution.
"That's why I was disappointed to see the Legislature treat the chamber with indifference, as if it is not relevant," he said.
The governor also promised to act as a conduit between businesses struggling to get financing and lenders.
Gibbons called small businesses vital to job creation, and told chamber members he was on their side.
"My number one challenge is to bring jobs to Nevada and increase our tourism-based economy," he said. "Our goal is to capitalize on what we have to increase employment and take people off the unemployment rolls."
After the meeting, Gibbons reiterated his anti-tax stance.
"We have a $3.5 billion shortfall in the next biennium. So, who is going to pay the taxes? The guy hiding behind the tree?" he asked. "There is no guy hiding behind the tree."
Contact reporter Valerie Miller at vmiller@lvbusinesspress.com or 702-387-5286.
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Well, goodbye Nevada. I've hung up my hat. We're leaving town soon - heading off toward the sunrise. NevaDUH's economy was SUPPOSSED to have diversified many years ago -with a movie studio industry, music and recording business, a high speed train between LA and LV, even a theme park was proposed. Instead, I see strip mall upon strip mall with empty stores; and the highest foreclosure rate in the nation. It's too little too late. I'm worried my teenage children cannot even get a part-time job; and I have already been laid off one too many times in the past two years. The state showed promise when we moved here 10 years ago; the want ads were brimming with jobs. Why heck, my new state HAS the lottery, Indian gaming AND horses to bet on. Maybe we'll come back to visit......maybe......
think about why trillions of dollars are in "tax haven" countries. switzerland was foremost. now many "fly speck" islands throughout the world.
the issue is gubmit hassle and exposure ti taxation. for decades, depositors in swiss bank accounts actually paid "negative interest" on savings accounts.
why has hong kong flourished ? and other "enterprise zones" ? little if any gubmit red tape and hassle.
@ Free Nevada
"Preaching," huh? Interesting choice of words.
But sarcastic language aside, tell me please why business has any more right to be "totally off-limits in future budget talks," than workers do? Isn't the former just as extremist a solution as the latter?
You want to accuse me of preaching? Fine - how's this for preaching? It's time for moderate, "middle-of-the-roaders" to take back the American political system from radical extremists of BOTH ends of the political spectrum! Liberal AND Conservative! Let's concentrate on actually DOING something for the state and the country, instead of pointing fingers at and attacking each other for personal competitive advantage!
Read "Culture of Complaint: the Fraying of America," by Robert Hughes. It's a very pertinent book.
@ David
In the end, the only meaningful answer is balance, or moderation. To share the blame AND the pain.
To treat ALL business owners as heartless, worker-enslaving monsters is just as useless as treating ALL workers as lazy, shiftless livestock. That have to be constantly whipped to make them work.
What happened to a sustainable, cooperative model for business in this country and state? Why are so many people intent on getting in, getting as rich as possible, then getting out as fast as possible? Regardless of whether they have to ruin the business and even the industry in the process?
I don't believe that it is utterly impossible for unions to consider taking ANY pay cut AT ALL. But I also don't believe that it is impossible for the city or any business to survive AT ALL if it treats it's employees better than the average Chinese peasant in a sweat shop.
The state royally messed up my business license this year. After 6 years with the same business license for an LLC, they never sent me my renewal forms. I remitted my checks anyway, not wanting to be late, and now they tell me they have no record of my business, although they cashed the checks last month. So, I'm looking at the infuriating letter they sent and I notice, they mispelled the name of my business. It has taken me almost two weeks to straighten out this mess. But the corker is, they are forcing me to pay penalties for 'being late' even though it was their error!
I have to say, "Sounds Nice's" post resonates with me. There is nothing keeping my business in the state of NV anymore. I'm seriously thinking of going back to California as there doesn't seem to be a lick of difference in the way the two states are being run. Besides, our DMV is now higher than CA too! The Californification of Nevada is all too real.
EVERYONE KNOWS MY JIMMY THE LOV GOV NUMBER 1 JOB IS NOT GETTING CAUGHT IN ANYMORE LIES ABOUT US. HE DOES MEAN WELL IF HE COULD JUST KEEP SEX OFF OF HIS MIND! HE MENTIONED SOMETHING ABOUT A BIENIUM AND I SAID NO WAY, NOT WITH ME OR MY ENIUM!