Given the economic climate, state governments have proposed some ridiculous ideas as of late for raising revenue and closing budget gaps. But Nevada Governor Jim Gibbons takes the cake when it comes to innovation. In 2008, the Nevada Supreme Court ruled the state’s casinos did not have to pay a “use” tax on complimentary meals they provide to gamblers to promote business. Boyd Gaming Corporation and others expected refunds for taxes paid on comped meals from 2000-2008 to the tune of $20 million each.
However, rather than refund the $210 million owed in total, Gibbons is citing a recent win in court over Boyd Gaming and claiming it’s actually Boyd who owes the state $20 million—in unpaid sales taxes on these free meals.
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Pennsylvania House Majority Leader Mike Turzai is leading the charge to privatize the state’s liquor sales. Pennsylvania can count only Utah in its company in terms of states that retain total control over both wholesale and retail liquor sales within their borders.
In Pennsylvania, this monopoly is the legacy of Gov. Gifford Pinchot, whose goal in the post-prohibition world of 1933 was to make sales of alcohol “as inconvenient and expensive as possible.” This dated goal is laughably at odds with all current and advisable economic policy- especially during a recession.
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Last Thursday, the House Judiciary Committee voted to move H.R. bill 1002 to the full House floor for consideration. The bill, better known as the Wireless Tax Fairness Act of 2011, was drafted to help halt the discriminatory increases in state and local wireless phone and data service taxes that have been passed over the last decade.
The language in the bills is as follows:
“No State or local jurisdiction shall impose a new discriminatory tax on or with respect to mobile services, mobile service providers, or mobile service property, during the 5-year period beginning on the date of enactment of this Act.”
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Yesterday, the Twin Cities’ Star Tribune ran an opinion piece by Tom Weaver, CEO of Achieve Services Inc., in which he advocated for a proposed $1.50-per-pack tobacco tax increase in Minnesota.
The tax would be levied to end the government shutdown in the state. Estimates from the Minnesota Department of Revenue claim the tax would raise almost $400 million in revenue over the next two years, and Weaver notes the increase is projected to lead 28,100 Minnesota adults to quit smoking. Weaver serves on the board of ClearWay Minnesota, a nonprofit dedicated to reducing tobacco use that says the tax could prevent as many as 41,000 Minnesota youths from becoming future smokers.
But these estimates only illustrate what most of us already know: The tax base for tobacco is small, and it’s getting smaller. This is a big reason why Minnesota will likely never see all of the estimated $400 million in revenue if the tax deters smokers as much as supporters say. In other words, they can’t have their cake and eat it, too.
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Given the economic climate, state governments have proposed some ridiculous ideas as of late for raising revenue and closing budget gaps. But Nevada Governor Jim Gibbons takes the cake when it comes to innovation. In 2008, the Nevada Supreme Court ruled the state’s casinos did not have to pay a “use” tax on complimentary meals they provide to gamblers to promote business. Boyd Gaming Corporation and others expected refunds for taxes paid on comped meals from 2000-2008 to the tune of $20 million each.
