By Sean Whaley | Nevada News Bureau
CARSON CITY – The Nevada Taxpayers Association has identified several concerns with an initiative petition to impose a margin tax on Nevada businesses filed by the state teachers union, including the title.
The “Education Initiative” outlining how the 2-percent tax on companies making more than $1 million in gross revenues should more properly be called the “Margin Tax Initiative”, the association said Monday in an email. The $800 million a year in revenue estimated to be raised from the proposed tax is not directed specifically to public education, the NTA said.
The money would go to the state general fund instead.
But that is just the beginning of the litany of concerns identified by the NTA.
“Proponents claim the $1 million exemption protects small businesses,” the NTA said in its assessment of the proposal. “Not true. The calculation of total revenue pursuant to the provisions of the initiative will put the income of many small businesses over $1 million. Those small businesses will include many franchise operators with a single location, most independently owned gas stations, many medical clinics, ranches and farms and a host of other businesses. In reality it is only the tiny business that will not be captured.”