• About Us
  • Activity
  • Advertising
  • Books
  • Business
  • Contact
  • Entertainment
  • feedback
  • Government
  • Home
  • Interviews
  • Members
  • National
  • Nevada
  • Nevada News and Views
  • Newsmax
  • NN&V Ads
  • Opinion
  • Politics
  • Polls
  • Privacy Policy
  • Subscribe
  • Subscription Confirmation
  • Survey
  • Survey
  • Terms of Service
  • Today’s Top 10
  • Travel
  • Travel
  • Travel
  • Welcome!
  • Yop Poll Archive
Nevada News and Views
  • Home
  • Muth’s Truths
  • Politics
  • Government
  • Entertainment
  • More
    • Nevada
    • Opinion
    • Business
    • Travel
    • News
    • Sports
  • Facebook

  • Twitter

  • Pinterest

  • RSS

Government

NTU Urges Legislature to Oppose Hikes in “Sin” Taxes

NTU Urges Legislature to Oppose Hikes in “Sin” Taxes
N&V Staff
April 5, 2011

(NN&V Staff) – The National Taxpayers Union issued an “Open Letter” from Andrew Moylan, Vice President of Government Affairs, to the Nevada Legislature today, urging opposition to “misguided liquor and tobacco tax hikes.” Here is the full text of the letter:

Dear Legislator:

On behalf of more than 3,100 Nevada members of the National Taxpayers Union, I urge you to reject legislative efforts to raise taxes on liquor and tobacco products. While proponents contend that these punitive tax hikes are a “win” for Nevada taxpayers, the reality is that these regressive schemes rarely, if ever, produce the promised revenue and are burdensome to small businesses and the poor.

Senate Bill 386, which will be heard in the Senate Revenue Committee tomorrow, would hike cigarette taxes to $2.00 per pack, an increase of 150 percent from the current rate of $0.80 per pack. The Assembly Taxation Committee will also be taking up Assembly Bill 333, which would raise cigarette taxes to $1.70 per pack and other tobacco products taxes from 30 percent to 55 percent of the wholesale price. AB 333 would also hike levies on beer, wine, and liquor. All told, this bill would constitute a tax increase on Nevada’s citizens and businesses of more than $250 million at a time when the state is still struggling to extricate itself from the recent housing and financial crisis.

Despite fanciful claims from their advocates, many tobacco tax hikes elsewhere have failed to yield the desired revenue. New Jersey reported a $52 million shortfall in tobacco tax revenues after it raised its cigarette tax by 17.5 cents. Subsequent to boosting its cigarette tax by 50 cents in 2009, the District of Columbia reported that it collected $15 million less than expected, and $7.6 million less than it collected prior to the tax hike. Other states, including Arkansas, Maryland, Mississippi, and Rhode Island, have also reported gaps in revenue collections following tobacco tax hikes.

While tobacco and alcohol products may seem like politically-convenient targets for tax increases, the reality is that they are a major source of business for convenience stores and other retail outlets. Raising taxes on cigarettes, beer, wine, and liquor would place Nevada businesses at a serious competitive disadvantage to those in neighboring states like Arizona, Utah, and California, which in some cases would levy significantly lower taxes if SB 386 or AB 333 were to pass. Moreover, since moderate income residents are more likely to partake in these products, they will disproportionately feel the impact of an increase in tobacco and alcohol taxes. Raising a tax that threatens to curtail commercial activity (thereby shrinking the revenue base) and heavily burdens the poor makes no economic sense.

Rather than increasing regressive taxes, we urge the Legislature to continue pursuing ways to trim wasteful spending and protect taxpayers. We look forward to working with you to enact common-sense reforms that do not include damaging tax hikes.

Prev postNext post

Related Items
Government
April 5, 2011
N&V Staff

Related Items

More in Government

Myth-Buster: Sugar Policy Misconception Debunked

N&V StaffFebruary 23, 2021
Read More

Cheat Sugar, Not Cheap Sugar, is the Problem

N&V StaffFebruary 16, 2021
Read More

India Battling Sugar Subsidy Addiction

N&V StaffJanuary 25, 2021
Read More

Sisolak’s Proposed Budget a Slap Across Nevada’s Face

N&V StaffJanuary 21, 2021
Read More

Katie Williams Predicts Return to Clark County Classrooms in February

N&V StaffJanuary 21, 2021
Read More

U.S. Supreme Court Restores In-Person Requirement for Chemical Abortions

N&V StaffJanuary 14, 2021
Read More
Scroll for more
Tap

Subscribe Free By Email

Looking for the best in breaking news and conservative views? Let Chuck do all the work for you! Subscribe to his FREE "Muth's Truths" e-newsletter.

* indicates required
Nevada News and Views
Nevada News & Views is an educational project of Citizen Outreach Foundation, a non-partisan IRS-approved 501(c)(3) organization. It is not associated or affiliated with any political party or group. Nevada News & Views is accessible by the public at no cost. It funds its operations through tax-deductible contributions from donors and supporters and does not accept government money or grants.

TAGS

Featured Article Nevada Politics Muth's Truths business government Government Opinion Obama News Donald Trump GOP Republicans Ron Knecht Adam Laxalt

Copyright © 2021 Citizen Outreach | Maintained by VirtualAlly

One-Stop Shop Website For Consumer Fraud Information
National Popular Vote: Dangerous Scheme to Steal Presidential Elections