Politics As Usual: President Obama Visits Las Vegas. Will He Address Nevada’s Tax System?
Today, President Barack Obama will be in Las Vegas, Nevada for a private, million-dollar fundraiser supporting the Democratic National Committee at the home of Palms hotel and casino owner, George Maloof. Also with a political agenda in mind, Obama will be speaking on the Las Vegas economy at a local town hall meeting directed towards the city’s business leaders.
Obama’s arrival to Sin City comes just weeks after he made a comment showing disfavor to people who “blow a bunch of cash in Vegas”. A comment that provoked Senate Majority leader Harry Reid to tell the president “lay off”. The Obama versus Vegas debate is fueled by the city’s economic status, in which the city and state’s revenue is very dependent upon gambling money. In fact, gambling and sales tax make up to 65% of the state’s revenue at times. Additionally, Nevada is experiencing a state wide budget crisis of upwards to $881 million (yet, we have real estate projects like CityCenter costing $9 billion to build). According to a recent survey of states by the Center for Budget and Policy Priorities, the state of Nevada faces the largest budget deficit in the United States.
More after the jump.
As a resident and college student living in Las Vegas, I have been affected first hand by the state’s budget crisis. Not only has Nevada consistently ranked at the bottom in funding education and social services, but now, Governor Jim Gibbons is proposing state agency budget cuts in areas such as higher education and public schools, on top of the $1.5 billion that was already slashed. No wonder our state is at the bottom in literacy rates, graduation rates, and even mandated immunizations.
A decline in the gaming industry however, is not entirely the issue. The issue is Nevada’s tax structure. According to a study conducted by the Progressive Leadership Alliance of Nevada, the poorest 20% of Nevadans pay 8.3% of their income in taxes, whereas the richest 1% only pays 2% of their income. You do the math.
If I were able to ask President Obama to address one issue while speaking to my community during the town hall meeting tomorrow, I would ask that he discuss Nevada’s disproportionate tax system. Up to this point, our tax structure has offered no support during this economic downturn, allowing the majority of businesses to get off without paying corporate, state and personal income taxes, and tax on the shares of stock.
What Nevada needs is a stable revenue system that is not heavily reliant on the gaming industry, and that is fair and able to adequately sustain our growing economy. Strategic action needs to be taken in order to re-develop the weak tax structure and hold big businesses accountable for paying their fair share, instead of milking money from the poor down to the last dollar for services like education and public services who everyone benefits from. Clearly, the income level of taxpayers is a matter of social justice and ordinary citizens are the ones having to bite the bullet in the state’s economic crisis.
great blog, we need to figure out how to have a more honest and robust conversation about taxes.
Why is the tax structure there 8.3 for the poor where as the wealthy pay 2%? SO we tax the less fortunate even more when they already have nothing to give???
WOW! So many points about this article strike a nerve with me especially the lack of funding for the education system. All the revenue they have received from gambling goes into real estate projects sure it may create jobs but is it really necessary? and we wonder why the US education System isn’t ranked in the top 10
great article Krysten, now it answers my question about the whole Obama/vegas fiasco and even more…
Well said! As we know, our current economy is based on gamgling. Also there are other factors, we have a large population of seniors, who don’t take jobs but they do spend money, so they are not a drain in that way on the economy. Maybe we need to attract even more seniors to Las Vegas. Another factor is the Casino’s make it possible for us to NOT pay state taxes. I just hope and pray that we stay State Tax-Free. We need other industries to come into las vegas in order to boost our economy. We can no longer rely on gambling to carry nor recover our economy. Another factor is that Las Vegas lost its way when they started going ULTRA-HIGHEND-LUXURY. Las Vegas was built on the middle class that could AFFORD to come to vegas. Along the way they dismissed what made Las Vegas Great. The people that can afford the extreme high-end luxury are spending their money on private jets to Saint Tropez and other luxury destinations around the world. Las Vegas to the Ultra-Luxury types is just a small play ground. Las Vegas forgot how it became the great tourist destination when people like us could AFFORD to come here for the weekend and freely spend money because we could AFFORD it.