Nevada Question 3 (2014), AFL-CIO Opposition Resolution

This page is the complete text of the resolution voted on and approved by the Nevada AFL-CIO on May 2, 2014, which officially opposed the Nevada Margin Tax for Public Schools Initiative, Question 3.

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“	Resolution # 3 (as amended, May 1, 2012 in Committee) RESOLUTION CONCERNING THE “TEACHERS” EDUCATION INITIATIVE Whereas: we feel tax policy is best established through the Legislative Process where the effects and implementation can be discussed and the issues resolved; and Whereas: we understand the need for implementation of tax policy where the effects, the levels of revenues and the utilization of those revenues are clearly defined; and Whereas: the Education Initiative does not clearly address the effects on all businesses in the State of Nevada; and Whereas: the Supporters of the Education Initiative have themselves argued different applications of the tax on businesses in the State of Nevada; and Whereas: the provisions of the Education Initiative do not clearly define how it would be applied to the construction industry; and Whereas: Supporters of the Education Initiative have advertised the tax as a Net Profits margins tax when in fact it is a Gross Income tax; and Whereas: many of the signatory contractors of the Building and Construction Trades Council have been operating on their reserves for the last several years as the State of Nevada tries to work its way out or poor economic times; and Whereas: the Education Initiative does not take into consideration the losses those contractors have endured but instead burdens them with a tax based on the Gross Revenues from work they may perform; and Whereas: many contractors have gone out of business during these poor economic times and the Education Initiative may place a tax burden on the contractors and business which have been surviving on marginal returns forcing them out of business as the tax burden may be higher than the profit margin; may it therefore Be Resolved: that he Nevada State AFL-CIO and our affiliated Unions oppose the passage of tax policy while it is not clear what the effect on our signatory partners will be; and be it Further Resolved: until the effects of the Education Initiative are clearly defined we oppose the passage and implementation of the measure, and that the Nevada State AFL-CIO will review and reevaluate its position relative to this measure at the 2014 Constitutional Convention.	”
—Ralston Reports