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Parking Fee, Let It Be - Taxed 
by Vice President Knight Allen
Originally published on March 10, 2016 - reprinted with permission

    Id like to offer you a different take on MGM's plan to charge for parking which has created quite a hubbub. The comments and letters to the editor expressing outrage at the plan and stating in no uncertain terms they'll never go near an MGM property if the plan is put into effect; all operate on the core assumption the company cares about what their individual customers think. But, what if . . . ? What if the company could not care less what the people of Las Vegas think? Or, for that matter, what any individual customer anywhere in the country, including California thinks? This thought came to me as I read the RJ's 2/19 article on MGM's earnings report for yearend 2015. In the article Mr. Jim ("We're not tone deaf") Murren emphasized over and over again MGM's focus on conventions.

    This thought came to me as I read the RJ's 2/19 article on MGM's earnings report for yearend 2015. In the article Mr. Jim ("We're not tone deaf") Murren emphasized over and over again MGM's focus on conventions.

    1. 350,000 square foot expansion to Mandalay Bay's convention complex. Mandalay "will outgrow the space in a couple of years." 
     2. 200,000 square foot expansion of Aria's convention area by 2018. 
    3. Company has "booked a half a billion dollars" of new convention business for 2017 and 2018. 
    4. Company is developing a master plan to add convention capacity on the Strip where it already controls more the three million square feet square feet of convention, meeting and conference space. 
    5. Bellagio, MGM Grand and Luxor could also see convention expansion opportunities. So, what if . . . ? What if the numbers crunchers, bean counting, paper pushing bureaucrats, led by Bean Counter #1 Jim Murren have run their algorithms and decided the future of MGM rests with the convention market not general retail market?

    Conventions are a gold mine. People come here, they pay higher prices for rooms, food and entertainment all while on a fun "working" vacation. It's a sweet system. The conventioneers have a good time, MGM raises its cash flow and profit margins and best of all it's all done on the corporate card. Tax deductible and completely subsidized by the American taxpayer. Oh, that parking charge? Mr. Murren probably knows that a lot more of us than we'd like to admit will simply go along.

Ka-ching!


    Speaking of who really pays for the high life of our corporate elite, the Sun had a front page story on January 25 titled "Casinos are spending heavily to defend tax increase; here's why." The Sun rounded up the usual suspects to give "insight" as to why. A UNLV professor, a direct beneficiary of higher taxes, said that while casinos' taxes went up everyone else's did too. The head of the Nevada Resort Association said they like it because they favor "broad based tax solutions to fund state government" and the gross receipt er, excuse me, the "commerce tax" is one of the broadest.

    So, what's wrong with the article? To put it succinctly it's a crock. A pile of two-faced hypocritical capitalist manure dumped on us by the rich, powerful and elite of Nevada society. BUSINESSES DO NOT PAY TAXES

    I've got the S&P500 to prove it, The Forbes 400 to prove it and a society with an ever widening gap between the rich and everyone else to prove it. Although it's probably less than 50-50 I hope the people get a chance to repeal the "commerce" tax.


    Memo:
To: NSC Members
From: Knight
Subject: Rooftop Solar/Net Metering
There comes a point when the noise gets deafening and it's time to shut it off. So, at least for a while, in the immortal words of Mr. Oliver Hardy, "I have nothing to say."

Contact Vice-President Knight Allen

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