Debate Ramps Up Over Business Margins Tax - KTVN Channel 2 - Reno Tahoe News Weather, Video -

Debate Ramps Up Over Business Margins Tax

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Last year, the Nevada Legislature didn't vote on the business margins tax. So now it's heading to you, the voters, in November.

The margins business tax is a 2% tax on all businesses grossing more than a $1 million annually.

The money would be set aside for education.

Here's the debate, though - would it hurt job creation, small businesses and stifle our already fragile economy?

Tray Abney, from The Chamber says it will.

"If you're a low margin business and you don't have much to spare and if you aren't making much profit, that could wipe out all their profits. Again, you could lose money and still owe the tax, so you didn't make any profit and now you're owing more. That would definitely affect a job creator and you certainly aren't going to use that money to hire more people."

Lynn Warne, former president of the Nevada State Education Association says this tax would only affect about 14% of businesses.

"47 other states have this and when you look at other states, they're rebounding economically. You look at their graduation rates, they are outdoing Nevada in our rankings. It's time these large corporations invest in our kids."

Abney says even if passed, there are some concerns with the tax, like where the money will actually end up.

"They say it will go to education, into the distributive school account, that's what it's called there in Carson City, but there is no guarantee that the legislature won't divert it or not appropriate as much as they had before."

Warne says Abney has nothing to base that statement on. She says if passed, the money would definitely go toward education.

The interview airs in its entirety on my weekend show Face the State. The show airs Saturday at 3:30pm and Sunday at 6:30am and 4pm.

Written by Chris Ciarlo

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