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Not For Three 
by Knight Allen, Director of Legislation
Originally published on March 13, 2014 - reprinted with permission

    It looks like the opening salvos in the great 2% margins tax battle (Question 3 on the ballot) have been fired.

At a meeting of the Nevada Taxpayers Association Governor Sandoval called the tax a "fatal blow" to Nevada's very shaky recovery.

A couple of days later the pro tax people held a rally in front of the Chamber of Commerce offices in support of the tax.

To say I oppose this piece of trash would be a massive understatement.  I can't stand it for what I believe are at least two very good reasons:
     1. the whole thing is based on a blatant economic falsehood* and

     2. it will do irreparable harm to our political system.
  * "...the profits of merchants are a subject not taxable directly...the final payment of all such taxes must fall, with a considerable overcharge, upon the consumers." Adam Smith "Wealth of Nations"

To put it more succinctly: BUSINESSES DO NOT 'PAY' TAXES.  They COLLECT taxes and forward them to government but they 'PAY' nothing.

The education system does not teach this to us. It then sends us out into the world defenseless against claptrap like, "We're going to make the corporations pay their fair share." Businesses are not going to pay. Only the market pays and we are the market.

Adam Smith's "Wealth of Nations" represents truth and economic reality.  The Nevada State Education Association's (NSEA's) vicious 2% margins tax represents well, something substantially less than either truth or economic reality.

There is no tax that perverts and corrupts our political system the way an income tax does. It doesn't matter whether it's state, local or federal an income tax is riddled with loopholes, favors for friends and punishments for enemies. Think I'm wrong? The vast majority of you reading this have probably come from other states that have an income tax, usually both business and personal. Can you honestly say the tax was administered fairly with no special exemptions for favored groups and industries? I doubt it. Then, of course, there's the federal income tax, in my opinion a cesspool of legalized political corruption unmatched anywhere at any time in human history.

So, here are the questions: Do we want to inflict Nevada with a form of taxation with a track record as bad as the income tax?
Are we going to allow the NSEA and the regressive statists to con us into believing the corporations will pay the tax when economic reality makes it obvious we're going to pay it?

The NSEA's margins tax is not a tax on capital.
The NSEA's margins tax is a tax on LABOR. It's a tax on every working family in Nevada.
The NSEA's margins tax is a tax on SENIOR CITIZENS desperately trying to survive a rising cost of living in the face of zero interest rates being paid on their life savings.

The NSEA's margins tax is a cruel and vicious hoax and it needs to be crushed in November.

Vote NO on QUESTION 3.

Contact Director Knight Allen