Posted on 03/24/2013 7:29:57 AM PDT by redreno
CARSON CITY -- Mining should pay its fair share, say critics who want to remove the industry’s separate and special constitutional tax rate.
Gold prices are high, but the state’s mining industry pays a constitutionally capped tax rate, and the state allows the industry billions of dollars in tax deductions before paying a 5 percent rate.
No matter the price of gold and no matter how much of it mining companies take out of Nevada, its tax rate remains the same because of that exemption in the constitution. Lawmakers who would like to collect more from the industry say their hands are tied.
Who else could accomplish such an ironclad protection but the mining industry with its legions of lobbyists at the Legislature who peddle influence and cram campaign coffers full of cash?
Read more: http://www.lasvegassun.com/news/2013/mar/24/mining-isnt-only-industry-constitutional-tax-prote/#ixzz2OT3Og4WX
(Excerpt) Read more at lasvegassun.com ...
Am I missing something? I remember way back when gold was $35 an ounce. If a 5% tax were levied on that, the state would get $1.75, right? But with gold at about $1600 an ounce, the state gets $80. That seems not so bad.
This whole "no matter the price of gold" bit seems kind of crazy -- unless I'm misunderstanding this entirely. And I'm not sure that "exemption" is the right word to use if a 5% tax rate is being imposed. Limit? Perhaps. But "exemption"? I'm not sure I see it.
What the article talks about if I understand it, it that the mining industry’s income tax is locked at 5%.
What you would be thinking about I believe is a royalty on which the article is silent.
The article does not mention royalties which is the usually way that states wring money out of mining companies which is a less damaging way of taxing a mining company because it is totally weighted on the success of removing minerals from the ground and producing a profit from that activity.
I’m not an economics wiz, and I am not trying to be dense — but if gold were $35 an ounce, I think the taxable income of the mining industry would be small. If gold is $1600 an ounce, I think the taxable income of the mining company is larger. I still don’t see why a steady 5% income tax is so devastating.
For a reason.
But it appears the new transplant libs are determined to ruin the historic mining dynamic of this state, and all the jobs that go with it.
When they make mining too costly in Elko and destroy that community (as well as Ely, Eureka, Battle Mountain, Tonopah, etc.) then I will propose my new name for their state they they can proudly fly on their battle-born banner: The Bankrupt State.
Bastard idiots!
--obviously, if any industry can still make a profit in the Obamaconomy , the politicians want to confiscate it to buy votes---
Wrong angle guys.
Extend the self-same constitutional protections to all means of creating wealth.
Well I think the idea for the mining industry is that it is less devastating than the regular corporate rate.
On the other hand I see that there are those in government that see unrealized income for the state government that they could be using to buy votes,
They see money leaving the state and going to stoke holders of these mining companies that they could be spending in the state that would earn them reelection.
This is another hit peice from the Democrat stronghold of Nevada called Las Vegas. Another of Harry Reid’s henchmen.
Mining in Nevada produced the highest value of all exports in the past year—AGAIN....mostly gold, but other minerals, also. FAR exceeds gambling & tourism in revenue.
Mining jobs are well paid and they are working 7 days a week.
Mining cannot just ‘move to Texas’. They CAN, however, shut down & go dormant, poducing nothing until wiser minds prevail. Those mineral deposits cannot ‘move to Texas’. either.
Tonopah is re-opening old mines & starting up new ones. JObs are available, but housing isn’t. If you want to try there for work you are better off with a self-contained RV vehicle.
Yerington is opening a new copper mine, which also has moly deposits.
The Dems in Clark county have also worked with Dirty Harry to steal the water & the water rights from millions of acres of Eastern & Northern Nevada. Such actions will bankrupt ranchers & create another dust bowl.
Don’t think it matters to you? Most of that alfalfa hay they grow is fed to dairy cattle in 5 states. When you are giving your kids cold cereal with water on it, remember “I told you so”.!!!!!
Limits make the state keep spending under control. The worst thing that has happened to Ohio in the past is a strong industrial base that provided a strong revenue strean to the state.
The state did not have any limits on the amount that they could tax or spend so spending ballooned to meet the income stream and then taxes grew some more. The big mistake is that the state set up long term spending or perpetual spending that could not easily be cut when the inevitable crash in income happened.
Nevada should not permit any tax increases pass through the legislature. Times are tough even if you have a bright spot in your state the darkness is just waiting to cover that light.
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