Skip to comments.Vegas is Proof Positive That Only Low Taxes Can Save the U.S. Economy
Posted on 05/22/2014 8:48:44 AM PDT by Kaslin
Business is booming in Las Vegas. Investors from around the globe are investing tens of billions of their money right now, in the middle of a terrible economy. Why?
I love Las Vegas. I don't mean to disparage it. But the reality is, Las Vegas is situated in the middle of an ugly desert. In the summer it's an awful 110 degrees. There is no reason anyone would invest billions of dollars here, instead of say San Diego or Los Angeles or San Francisco or Denver. All of which are much more naturally beautiful places. Or Atlanta, Charlotte or Dallas- big time cities with huge populations both in the city and nearby. Vegas is in the desert, in the middle of nowhere. Why are smart banks and big companies gambling on Las Vegas?
It certainly isn't because the U.S. economy is booming. It's not.
The national media tries to project a positive picture. But they are covering up the facts to protect their buddy Obama. The reality is that the U.S. economy is in freefall. Have you seen the GDP numbers for the first quarter? Were in reverse. http://money.cnn.com/2014/04/30/investing/gdp-economy/
Obama blamed it on cold weather. Yet somehow Canadas economy is booming, with much colder weather. http://business.financialpost.com/2014/02/28/canada-gdp-surges-2-9-in-final-quarter-blowing-past-expectations/
Tax revenues in 26 states are still lower than in 2008. And the gain from the other states is merely because they raised tax rates. http://www.moneynews.com/Economy/Pew-Recession-States-Revenue/2014/05/19/id/572183/?ns_mail_uid=32342417&ns_mail_job=1569821_05202014&promo_code=sl335zgr
The jobs picture is even worse. The media claims unemployment is going down. That narrative is either pure fantasy or fraud. The reality is that the unemployment rate improved because 806,000 people stopped looking for work last month. http://www.dailykos.com/story/2014/05/02/1296044/-Government-reports-increase-of-288-000-jobs-in-April-Official-unemployment-rate-falls-to-6-3#
Thats almost one million of our fellow citizens who have given up hope in a month. The U.S. economy under Obama's taxes, spending, entitlements and regulations can be summed up with two words: decline and disaster.
So why is Vegas booming? "The Vegas Way" is a model for turning around the entire economy.
Homes are selling like hotcakes in Las Vegas- with multiple offers (often in cash) on each property. Las Vegas and Nevada lead the nation this year in home appreciation. http://www.reviewjournal.com/business/housing/survey-nevada-leads-us-home-price-gains
Tourists are flooding into Las Vegas- we are on track to break 40 million tourists this year (an all-time record). http://www.reviewjournal.com/business/tourism/vegas-tourism-hot-hot-hot-visitation-rises-third-straight-month
And last month Nevada was 2nd in the nation in jobs created. http://www.reviewjournal.com/business/economy/nevada-unemployment-rate-sees-biggest-month-month-drop-more-30-years
But the best news of all involves money- investors are putting their money where their mouth is. It seems everyone wants to invest in Las Vegas.
*Asia-based Genting Berhad begins construction this year on the $4 billion Asian-themed Resorts World Las Vegas, a 6000 room mega-resort on 87 acres, complete with a panda exhibit, waterpark, rooftop sky park and convention center.
* The High Roller, the worlds biggest observation wheel just opened. It dwarfs even the famous London Eye. Caesars Entertainment spent $550 million to open The Linq- an outdoor retail, dining and entertainment district all built around the massive High Roller.
*Caesars also just recently opened the worlds largest Nobu restaurant inside the worlds first Nobu luxury hotel. The hotel partners are world famous Japanese chef Nobu Matsuhisa and actor Robert De Niro.
*MGM Resorts just announced The Park,
an outdoor retail, dining and entertainment complex built around a 20,000 seat sports arena.
*MGM Resorts also announced a partnership with Cirque du Soleil to build City of Rock, a 33-acre, open-air concert venue with a capacity of 80,000 on the world famous Strip.
*The Cromwell, a $185 million high-end luxury boutique hotel opens this month. It features a restaurant from celebrity TV chef Giada De Laurentis and a 65,000 square foot rooftop beach club/nightclub.
*On Labor Day weekend SLS Vegas opens. Its a $415 million 1600 room hotel (formerly the Sahara) by the owners of a nightclub empire.
*Famous private equity company The Blackstone Group just days ago paid $1.73 billion for the stylish Cosmopolitan Resort.
Not one, but two massive water parks just opened in the Las Vegas Valley. Other resorts are spending hundreds of millions on renovations to their properties.
Whats causing smart businessmen to invest tens of billions of dollars in Las Vegas in the middle of economic decline, crisis and uncertainty? Whats in the Vegas water?
The answer is low taxes and fewer regulations. Las Vegas is Americas Monte Carlo. We have zero state income tax, zero business income tax, zero capital gains taxes, zero inheritance taxes and among the lowest property taxes in the country.
Investment is flooding in because everyone wants to do business in a state with low taxes. Everyone wants their money working in a place with low taxes. Everyone wants to create jobs in a place with low taxes. Everyone wants to live (or establish residency) in a place with low taxes.
That could be why so many of Californias most successful businesses are moving to Nevada or exploring a move or retiring here or buying a condo here to claim residency. Isnt it funny how suddenly anyone and everyone with either high income or assets in California wants a Las Vegas address? Go figure.
All of Nevadas success proves that Obamas vision is a failure. No one wants to work 12 to 16 hours a day running a business, while risking millions or billions of their own money, to then give the government half (or more) of what they make. That vision fails all over the world. Its the reason EU countries like France, Italy, Spain, Greece and Portugal are insolvent and living a Great Depression that will last a generation. Its the reason Cuba is insolvent. Its the reason Venezuela has toilet paper and food shortages. Its the reason the old Soviet Republic and Peoples Republic of China have re-branded to capitalism.
Low taxes are the reason the Hong Kong and Singapore economies are booming, with unemployment in the 3% range.
Low taxes are the reason that low or zero tax states like Nevada, Texas, North and South Dakota are leading America is economic growth, investment and/or job creation. Everyone wants the same things in life- the freedom to start a business, invest our money and be rewarded, not punished, demonized or regulated to death for our hard work and success. Try as he may, Obama just cant change human nature. Everyone wants to keep more of what they make.
Any state or country that offers that opportunity will boom. Any place in the world that offers the Obama vision (aka socialism or progressivism) will fail miserably. That is a fact.
Viva Las Vegas!
And all this time I thought punishing productivity with confiscatory taxes, regulations and penalties was the way to increase performance???!!!!
When living in Las Vegas I usually walked to work. One night I was walking past the Sahara Hotel and looked up at the clock. I thought I was late, because I thought it was about 12:30 AM and the clock said it was 1:06. Then I realized it wasn’t the time, it was the temp.
I now live in Maine. At 6 this morning it was 46 F. In freakin’ May.
Sorry, Las Vegas is not booming because it’s got low taxes.
It’s booming because there’s only one Las Vegas, just like there’s only one NYC or San Fran. The sheer concentration of gaming and shows in Vegas creates a pull for those who want to gamble or go to shows no other venue can compete with.
IOW, lowering taxes in Chicago, while no doubt a good idea, will not turn it into another Vegas.
This is purely an economic ploy to attempt to discredit the policies of this administration. In particular, it is an attempt to discredit our fist black president. There you have it, folks. It is pure racism.
Funny, a taxi driver taking us from the airport to the Luxor was telling us how things were almost depression-like in Vegas. That was 2 years ago.
“Its booming because theres only one Las Vegas...”
Could this be a version of the Orlando-effect? The more family resorts that are in one location, the more draw it has for family vacationers.
The more adult entertainment in one location—Las Vegas—the more adult vacationers. It is a rolling ball.
Yup. Orlando was an example I considered. Don’t live too far away.
Lots of towns seem to think opening a casino or a theme park will make them competitive with Vegas or Orlando. Won’t, of course.
And yet they elect (or the Rat machine elects) Harry Reid to inflect on the rest of us.
I just might live to see Lake Mead dry up.
I’m not surprised that LV eventually turned around. It achieved critical mass as a tourist and convention draw many years ago. Yes, it’s desert but that’s a good thing when you’ve spend months in a dreary place like the mid west.
I was there 2010 to 2012. Construction stopped. Only retail expanding were dollar stores and Goodwill stores.
In the summer, get outside before noon or after sun down. The desert if beautiful at night and the stars amazing only 15 miles from town.
However, lowering taxes in Chicago, Cleveland, Detroit and their subsequent states would turn those cities back into the engines of economic activity that they once where. The excessive taxes and regulations in these and other areas has run off businesses and people and will continue to do so.
The entire U.S. economy would boom if the 16th amendment was repealed and the Federal Government was forced to live on the fees and tariffs it should live on.
Just don’t get in a non-injury auto accident there. The police are in a snit because of no new-hires, so the new policy is to not respond to a fender-bender. “Work it out between your insurance companies” they tell you.
In response, the lawyers now advertise their toll-free number and advise you call them IMMEDIATELY. So now some drivers can sue you into bankruptcy.
If Nevada didn’t have a helmet law I would have considered moving there.
Beg to differ. Vegas is booming becasue of this: