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Government

Nevada Congressional Delegation on Wrong Side of Tourist Tax Bill

Nevada Congressional Delegation on Wrong Side of Tourist Tax Bill
N&V Staff
October 8, 2009

The fiscal conservative Club for Growth is urging all members of Congress to vote “NO” on the Travel Promotion Act of 2009 (HR 2935/S 1023). The bill is expected to be considered as early as this week in both chambers and is being supported by the Nevada delegation. Club for Growth announced on Wednesday that the vote on this bill will be included in its 2009 Congressional Scorecard.

“This bill would ‘promote leisure, business, and scholarly’ travel to the United States by taxing these same travelers,” the Club said in a statement. “The proposal would set up a new $400 million slush fund called the ‘Travel Promotion Fund’ that would be run by the tourism industry itself to promote tourism. This inefficient allocation of money would prevent tourists from spending that same money on shopping, food, and other expenses.

“This fund would also put into place yet another private-public spending program that can be expanded and abused using tax dollars, much like what happened with Fannie Mae and Freddie Mac. Furthermore, foreign governments will likely retaliate with similar protectionist taxes on American tourists, making this even more senseless. A far better alternative would be to cut corporate taxes so that the tourism industry has additional resources to promote their own services.”

The Club for Growth is right on this. The Nevada congressional delegation is wrong.

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