Nevada On Notice: Don’t Let Tax Tail Wag the Dog!

That’s the warning emanating from a recent study of the Tax Foundation.  Don’t get too greedy, boys – cut spending before hiking taxes – especially in economic times such as these.

Noting that the late trends coming out of the legislature suggest higher taxes are the answer to legislators’ (mostly democrats’) prayers, the Foundation sounds a warning.  In the Foundation’s State Business Tax Climate Index (issued earlier) ranked Nevada as 4th in the entire U.S. of A.  Quoth the Foundation, “The Silver State’s lack of an individual or corporate income tax eliminates the compliance burdens and deadweight loss associated with an entire tax.  Despite a relatively high sales tax, overall the state’s tax system offers a simpler, more stable, and more competitive tax environment relative to the other states.”

Compare California, f’or instance, whose index standing was a nauseating 49th!

And in further comparing Nevada’s situation in comparison to other states had the Silver State imposed any one of the seemingly favored tax “solutions” to its ills, put these factoids in your pipe and smoke them:

  1. If Nevada had a corporate income tax on July 1, 2010, the state’s corporate tax “sub-index” ranking would have been 32nd instead of first!
  2. If Nevada had a “margin” tax on July 1, 2011 (as has been proposed, indeed) similar to what Texas introduced a few years ago, the state’s corporate tax “sub-index” ranking would have been 45th instead of first!
  3. If Nevada had a gross receipts tax on July 1, 2011, the state’s corporate tax “sub-index” ranking would have been 39th instead of first!

So tax ’em at your own risk, boys.

And from our “nickel and dime the politicians” department comes word recently

that Mr. Newt (Gingrich) is already on the radar of those who would torpedo his presidential candidacy, for reasons which appear clearly silly.

As soon as Newt announced, there came forth from the lauded Associated Press that companies run by Gingrich have faced overdue tax bills in four states, to the tune of…..are you ready for this?….more than a whopping $6 grand!  AP goes on to pontificate that the debts in question ranged from nary $195 in unpaid property taxes owned in Georgia, to $1,969 in unpaid Missouri taxes.

We’re not espousing delinquency, but give us a break.  And recall the parade of tax malingerers presently holding court in the Obama administration at the highest levels.

Phooey.

CONSULT YOUR TAX ADVISOR – This article contains general information about various tax matters.  You should consult your CPA regarding the implications to your own particular situation.

Jeff Quinn, the author of this article, is a shareholder in Ashley Quinn, CPAs and Consultants, Ltd., with offices in Incline Village and Reno.  He can be reached at 831-7288, welcomes comments below, at jquinn@ashleyquinncpas.com, and invites readers to consider his other writings at www.taxlawtips.com.