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Vol. 3, No. 11, November 2007, Tumbling Dice

Teachers’ Tax?

By Casino Connection Staff   Tue, Dec 04, 2007

A Nevada teachers group announced plans to push for a ballot initiative that would rely on the state’s gaming industry to improve funding for public education programs and increase teacher salaries.

The proposal from the Nevada State Education Association would add another 3 percent tax on gambling revenues at casinos grossing more than $1 million a month. It would bring their total tax to 9.75 percent, and generate more than $200 million a year.

“There is nothing more important than increasing educators’ salaries, benefits and improving their working conditions as well as the learning conditions of students,” said Lynn Warne, NSEA president. “We have chosen to stand to make a difference and we will not quietly submit to the idea that there is nothing we can do.”

The proposal would need voter support in 2008 and 2010 before it would take effect.

Warne said polls show overwhelming support for the union’s petition to amend the state constitution.

Not surprisingly, the state’s gaming industry does not support the proposed tax increase. Bill Bible, president of the Nevada Gaming Association, pointed out the obvious: “If you raise taxes you reduce investment and the amount of jobs that are created as a result of that investment.”

Bible criticized the proposal for targeting only one industry. He added that gaming funds nearly 33 percent of public education in Nevada. Bible also said that the resorts agree with the teachers on the need for quality education, but added, “The problem with this particular proposal is that it targets one industry... and doesn’t bring other payers to the table.”

Senate Majority Leader Bill Raggio thinks the legislature should be the only one to approve a tax increase. He does not support using a ballot initiative to impose higher taxes on any industries.

“Targeting a single tax source for a single spending purpose is not a responsible approach,” Raggio said.

By Casino Connection Staff

Casino Connection  Staff

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