In Stateline, Nevada during the 1940’s there used to be a “Welcome to Nevada” sign that read “A Debt Free State Welcomes You, ” “No sales tax, ” and “No Income Tax.”
That was different century though. Today, while Nevada’s has no income tax, the state’s debt is well over $26 million and it’s sales tax rate is now 6.85% to 8.1% depending on local municipalities.
Tesla’s decision to build their factory in Northern Nevada came with some incentives. These include transferable tax credits of $12,500 for up to 6,000 permanent, full-time employees, no real or personal property taxes until 2024, and exemption from Nevada’s 1.17 percent modified business tax on wages for 10 years.
Great — but there are two problems as I see it.
The first is employment. Yeah, yeah, yeah, the politicians and executives are boasting 6,500 jobs at an average of $25 an hour.
However, many of those jobs will be filled from outside the area. This is because Nevada’s education system ranks traditionally at the bottom of most national polls; we don’t have the trained workers necessary to fill the positions.
The second are the dim-wits who are ‘negotiating’ to bring this company to Nevada. They’ve wasted tax-payer money, when all they need to do is cut the cost of doing business in the state by eliminating over-regulation and high taxes.