• About Us
  • Activity
  • Advertising
  • Books
  • Business
  • Contact
  • Dashboard
  • EB5
  • Entertainment
  • feedback
  • Forgot Your Password?
  • Government
  • Home
  • Interviews
  • Login
  • Members
  • Meme generator
  • National
  • Nevada
  • Nevada News and Views
  • Newsmax
  • NN&V Ads
  • Opinion
  • Pick a New Password
  • Politics
  • Polls
  • Privacy Policy
  • Profile
  • Recent comments by me
  • Recent comments on my posts
  • Register
  • Submit post
  • Subscribe
  • Subscription Confirmation
  • Survey
  • Survey
  • Terms of Service
  • Today’s Top 10
  • Travel
  • Travel
  • Travel
  • Welcome!
  • Yop Poll Archive
Nevada News and Views
  • About Us
  • Advertising
  • Contact
  • More
    • Nevada
    • Opinion
    • Business
    • Travel
    • News
    • Sports
  • Facebook

  • Twitter

  • Pinterest

  • RSS

Government

Tesla Deal Appealing, but Unconstitutional and Risky

Tesla Deal Appealing, but Unconstitutional and Risky
N&V Staff
September 11, 2014

(Janine Hansen) – Why is the government subsidizing millionaire corporations at the expense of the poor and middle class? The Governor is already being sued for giving million dollar subsidies to Elon Musk’s SolarCity. Now he plans to subsidize Elon Musk’s Tesla to make cars for millionaires while Nevada’s businesses and taxpayers foot the bill. Why?

The Governor and the Legislature already violated the trust of the people by twice refusing to sunset the business tax which would have benefited all Nevada businesses equally and create jobs. Now the Governor is asking the Legislature to violate the Nevada Constitution and undermine the rule of law by giving more money to Californian Elon Musk’s Tesla. Why?

Has government now become the arbitrator and subsidizer of “special” corporations and business that are chosen to flourish while all other businesses are taxed to pay for the chosen?  The Tesla deal undermines the rule of law.

Yes, the promise of a company investing up to $5 billion in Nevada is very appealing. But betting hundreds of millions of taxpayer dollars on an unproven enterprise is extremely risky.

Just today, for example, the Wall Street Journal reported that, surprising the conventional wisdom, demand for electric and hybrid cars is declining, driven down by multiple factors. And, of course, in just the last few years, taxpayers lost hundreds of millions of dollars after federal politicians gave handouts to green-energy companies such as Solyndra and Abound Solar.

Government subsidies make taxpayers assume the risks of business ventures while being deprived of the financial rewards that willing stockholders receive for bearing those risks.

Even when government-subsidized businesses do return some nominal profits, hidden behind those profits are always the unseen opportunity costs imposed on everyone else.

At root, it is fundamentally unjust for government to use its powers to financially reward the “connected” at the expense of those not so well connected. This is why Nevada’s founders expressly prohibited state subsidies to private companies in

Article 8, Section 9 of Nevada’s Constitution. It reads:

“The State shall not donate or loan money, or its credit, subscribe to or be, interested in the Stock of any company, association, or corporation, except corporations formed for educational or charitable purposes.”

Thus, to use government to designate a few financial winners — and many financial losers —undermines the rule of law.

What is needed is a single set of rules for entrepreneurs: a common law. To breach that principle — especially when calling a special legislative session for the benefit of one company — is to foster a system where the politically powerful are even more advantaged over everyone else.

That is not the America which has prospered in a free-market economy. That is a country where companies will increasingly ignore consumers and increasingly shift their focus to pleasing politicians.

(Janine Hansen is director of Nevada Families for Freedom)

Prev postNext post

Related Items
Government
September 11, 2014
N&V Staff

Related Items

More in Government

Graves: Don’t Allow Subsidized, Foreign Sugarcane to Enter U.S. Markets

N&V StaffNovember 1, 2022
Read More

Some Cheerful News on Flat Rate Taxes

N&V StaffOctober 21, 2022
Read More

Conservatives Should Not Surrender on Sugar

N&V StaffOctober 7, 2022
Read More

Running On Empty

N&V StaffOctober 6, 2022
Read More

Help a Sheriff Fire a Corrupt Governor?

N&V StaffOctober 4, 2022
Read More

CCSD – MathLITE and Exacerbating the Teacher Shortage

N&V StaffSeptember 29, 2022
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 business Muth's Truths government Opinion Government Muth’s Truths Obama Ron Knecht News Donald Trump GOP Republicans

Copyright © 2022 Citizen Outreach | Maintained by VirtualAlly

Outlook Not Sweet for #1 and #2 Sugar Producers
Marijuana Regulators Tempting the Law of Unintended Consequences