Posted on 10/10/2014 7:16:01 AM PDT by redreno
LAS VEGAS — Proponents of a ballot measure that would remove a mining-tax cap from the Nevada constitution said the industry has a sweetheart deal that keeps it from paying its fair share, while opponents said the measure is the first step toward raising taxes and discouraging mining companies from doing business in the state.
The remarks came during a debate on Question 2 that was scheduled to air at 7 p.m. Thursday on Vegas PBS. Passing the measure would repeal a 150-year-old constitutional provision that applies a 5 percent cap to taxes on the net proceeds of minerals and would allow the Legislature to set another rate if it chooses.
“It does not do anything in terms of raising taxes or lowering taxes,” said proponent Bob Fulkerson, state director of the Progressive Leadership Alliance of Nevada. “It will not cost jobs. All it will do is simply give the Legislature one more lever to pull when they’re looking at how to shore up our state’s very dysfunctional tax system.”
Question 2 opponents note that mines pay the same taxes that many other businesses do, plus the mining industry-specific net proceeds of minerals tax. They argue that potential tax increases could discourage companies from new exploration projects and might kill off mining industry jobs, which pay an average of $88,000 a year.
(Excerpt) Read more at reviewjournal.com ...
Without that tax cap you can kiss mining goodbye in Nevada. Right now the price of PM is lower than what it costs to bring it out of the ground. Mr. GG2 has a couple of proven placer claims out there and they are not even worth working now. If you want to mine you have to go to Canada. He and a friend have a claim in BC that actually would be worth working but you can only work it about 3 mos a year.
The government of the United Democratic Socialist States of Amerika is doing everything in its power to shut down mining completely through EPA regulation and taxation.
ONLY if it helps Harry Reid make a few more million dollars.
Because raising taxes on business ALWAYS works....
Fulkerson is a commie pure and simple. 5% is more than fair keeping in mind that when it was enacted gold was $12/oz.
That's not true!
The Legislature can choose any tax rate less than or equal to 5%
A mine cannot just up and move away——
HOWEVER: They can reduce drastically how much mining they do. The gold/silver/copper/lithium isn’t going to drift off somewhere else. The mines can shut down to just one shift a day. Most of the large ones now work 3 shifts a day. They can Stockpile & NOT SELL their refined product & just hold it until the tax issues get straightened out.
Another TAX bill is looming here in Nevada. They are trying to charge 2% on GROSS income on any business that Has a GROSS over $1 million dollars.
This 2% tax ‘is for the children’ because it is money supposedly going to support the schools. The current Governor is running ads saying how he & the Legislature found $486 million to help the schools——WITHOUT raising any taxes-—and now, here comes this 2% “margins tax”. IF they already have raised so much money for the schools-—they don’t need another $2 BILLION from the margins tax. Also- the initiative is so poorly written, that the money raised can end up being used for anything.
More double dealing from the politicians.
Sounds like only the ‘big boys’—right???
NOT RIGHT!! This will hit every fast food franchise—every dairy farm—every hay grower—every medium & small sized company. You can GROSS a million dollars & have a net loss at the end of the year.
This is a back door entry into taxing people in Nevada. Many companies have moved to this state & provided jobs to avoid the heavy taxes in other states—especially California.
Cabela’s built a huge new facility about 10 years ago—less than 6 miles inside the Nevada border with California. They made it clear they would NOT build in California. Those customers often come to Reno for the weekend & spend money in lots of places.
The 3 main sources of income in this state are Gambling (down dramatically from poor economy & proliferation of Indian casinos)—— Agriculture——and MINING. Everything else is way below these 3 items. Tesla is coming to Nevada with a new lithium battery factory. But—they are building batteries for their cars—which are assembled in California & sold from there. No sales tax revenue from here....and they are their only customers—so no tax from that transaction, either.
The margins tax needs to be defeated. Along with the new gun laws Bloomberg is pushing here in Nevada.
I definitely understand the mining issue being in Alaska. People consistently want to rape the mining/oil companies to get them to pay “their fair share” even many so-called conservatives, whom I heard called red-neck socialists want to do it.
It doesn’t make sense. They can and will do all the things you mentioned. In order to still make a profit, and to keep in business. Some people won’t be happy unless we start doing mining like they do in 3rd world countries with everyone scavenging for anything they can find.
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