Economics 101

On March 20, 2009, in Muth's Truths, by Chuck Muth

Economist will tell you that you get more of what you subsidize and less of what you tax.

So I still can’t understand why – as tourism, Nevada’s #1 industry, continues to dry up resulting in numerous hotels/casinos shutting down – Republican Gov. Jim Gibbons, Republican Senate Minority Leader Bill Raggio and Republican Assembly Minority Leader Heidi Gansert thought it was a smart thing to raise taxes on…tourists. Why do they want less of them?

Ditto the proposal by Republican Assemblyman John Carpenter and Democrats to raise taxes on beer, wine and Jack Daniels, as well as socialist Democrat Assemblywoman Sheila Leslie’s proposal to raise taxes on cigarettes. By raising taxes on these “sins,” you will, of course, get less sinning. However, you’ll also be REDUCING the amount of overall tax revenue coming in. This is a prime reason why money from the tobacco settlement which funds the Guinn Millennium Scholarships continues to shrink.

I wonder what the effect would be on business start-ups and job creation if our legislative geniuses pass a broad-based business income tax this session?

 

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