The Las Vegas Sun is reporting that Nevada Gov. Jim Gibbons wants to tax food comps. He claims it would close a $150 million "loophole." This is despite his pledge of "no new taxes." I can only assume Gov. Gibbons has talked with his compatriot in the Sacramento, Arnie Schwarzenegger, as they both are No New Tax guys except they are both all for "fees, closing loopholes and revenue enhancements."
This "wisdom" is no different than the grips I have with the management over at the Venetian (See my June 21st Rant below.) When things are tough, you reduce taxes (or margins) not increase them! You have to be more lean and nimble not fatter and more bloated. So instead of giving us a reason to come to Vegas, the brilliant folks in Carson City just give the 35 million people in California more reason to gamble at the local Indian casino!
One more thing that needs to be noted here... Gov. Gibbons also said "“I want them (the Legislature) to close that loop so that we don’t get ourselves in a further problem dealing with it down the road.” Anyone who has ever watched a political mind at work know exactly what this means... Instead of closing a "loophole" the Governor is just opening up the floodgates. Does anyone really believe that once government taxes food comps that free rooms, shows and drinks are not far behind. Once they gets their fingers on a tax, they never let go just look for more ways to feed the ever growing beast. Just pathetic!!!
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