Cooper Howard reports on two recent SCOTUS decisions that will change government finance over time, and perhaps raise government credit scores.
The first decision requires sales tax on internet sales. Nevada is the most dependent of all states on sales tax to pay for state and local governments, so this ruling should have an exaggerated result for Nevadans. The boost in cash flow will be big. Internet sales tax revenue will be 100% paid by Nevada residents. Tourists don’t get to participate.
The second decision likely won’t have any impact in Nevada for reasons explained in the article.
Disclosure note: From time to time, I serve as treasurer for various political campaigns. I served as campaign treasurer for Dan Schwartz last year.
Nevada Treasurer Dan Schwartz has proposed a budget plan for the state that increases spending 4.6% over the next two years. This stands directly opposed to Governor Brian Sandoval’s proposed state budget that increases spending over 12%, and would require over a billion in tax hikes on Nevadans instead of tourists. This comes on the heels of major state tax hikes, mostly on residents, in 2003 and 2009.
You can read about it in today’s Review Journal, though you have to tolerate the biased reporting, in which the 4.6% spending hike is “conservative” and the 12%+ spending hike is “moderate”. It makes you wonder what the reporter would label an attempt to reduce the size and scope of government!
Nevadans voted in 2004 and 2006 to amend our state Constitution to set a Nevada-only minimum wage at $1 higher than the federal minimum, and to index the minimum wage for inflation.
Critics (like me) called it a Nevada Young Adult Unemployment Act, and as reported by the state a couple of months ago, showing dead flat levels of hiring 14-18 year olds, the largest group of minimum wage earners in Nevada when you count tips.
Now comes word from another study – this one performed by the left – showing that in the three years after Nevadans amended their Constitution, incomes in the bottom 99-percent – that’s all the rest of us who aren’t in the highest-income 1% – dropped ten time worse than the national drop.