Sandoval Announces Tax Cut for Businesses - KTVN Channel 2 - Reno Tahoe Sparks News, Weather, Video

Sandoval Announces Tax Cut for Businesses

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On Tuesday Governor Brian Sandoval announced a tax cut for Nevada businesses.

At a press conference at the Las Vegas Metro Chamber of Commerce, the governor said that Nevada has officially paid off its $800 million debt to the federal government, racked up due to unemployment claims during the recession.

"Nevada is killing it right now," Sandoval said. "We are doing well."

Sandoval said the state has also managed to put $1 billion away in an unemployment trust fund as a buffer against another recession. That's a nearly $2 billion flip in just about six years.

So now, he's cutting the tax on businesses. Nevada's businesses currently pay 2.58 percent in unemployment insurance taxes. That is going down to 1.95 percent. Sandoval said it will be a savings of $180 million a year.    

"That's what's great about this," Sandoval said. "The companies-- they can give raises. They can improve benefits. They can do some more investment."

That tax cut will take effect as soon as it's approved by a legislative commission, which is meeting on Dec. 19.

Sandoval said Nevada's businesses have shouldered most of the burden of this debt, and he thanked them for the spike in job creation that expedited the repayment process. He said at the peak of the recession, Nevada was paying $45 million per week in unemployment claims. Now it's just $5 million per week. Nevada's unemployment rate has dipped below 5 percent, with more than 245,000 jobs created since the market bottomed out.

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