One of the dangers of the Margin Tax is that so many business owners think it’s such bad policy that it will never pass. However, a recent poll suggests otherwise. In fact the poll, which was conducted before the Coalition to Defeat the Margin Tax Initiative launched their mass-media campaign, showed a passage by nine percentage points. Coined the Education Initiative, the plan would impose a 2 percent tax on gross revenue for Nevada businesses, even if they made no profit.
The truth is, bad legislation sometimes gets passed. And, in this instance, there’s simply too much at stake for all business owners not to get involved and help defeat Question 3. Therefore, I would ask business leaders throughout the state to distribute the following letter to their employees. You can find a downloadable copy of this letter at the bottom of this page.
To Our Valued Employees,
The Nevada general election will include what could be a devastating tax for our business and all Nevadans. Known as the Education Initiative, Question 3 is an ill-conceived tax that has the potential to destroy jobs, kill businesses and increase the cost of living for all our families. The plan calls for a 2 percent tax on the gross revenue of Nevada businesses. Since the tax is to be imposed on gross receipts, a company can lose money and still be subjected to the tax.
Touted as the solution to education funding, the initiative does not have a provision that guarantees those additional taxes will be used for our schools. There’s no doubt our state needs to invest in education, as our children are our future. We can all agree that education must be a priority in our state; but this initiative is not the solution.
Should Question 3 pass, you can expect to see businesses (including ours) throughout the state cut back on expenses, in many cases reducing their workforce and in some instances, simply closing their doors. Furthermore, those companies that remain in business will be forced to pass the tax along to consumers, thereby making goods and services more expensive for all of us.
Even the basics, such as utilities, gas, healthcare, clothing and food would cost Nevadans more if this initiative passes. And, since we’re just now recovering from the most severe economic hardship since the Great Depression, now is hardly the time to increase our cost of living.
Business leaders, organizations and even unions throughout our state realize the devastating and far-reaching effects the initiative could have should it pass on November 4th. Therefore, it is with great concern for our business and all our lifestyles, that I urge you to vote against Question 3. In addition, I would ask you to help us warn your family, friends and neighbors about the tax initiative and ask them to also vote against it.
I very much appreciate your serious consideration of this initiative and your support in helping us defeat Question 3. Should you wish to further investigate Question 3, you can obtain more information at www.stopthemargintax.com. As with this business, we cannot succeed without your help.
By Whose Authority?
For more information on my Commentary and to see some of the backup research, or if you wonder why I take the position I take, go to www.LyleBrennan.com.