As a business owner and supporter of education, I cannot support the proposed 4 percent business income tax initiative as it is dangerous not only to my business but to every business in the state of Nevada.
All businesses will be required to file IRS schedules even if exempt fiscally, putting your tax information in the hands of a newly-created mini IRS.
Those individuals filing IRS schedules C, C-EZ, E and F would be required to file as well. This includes income from rent, royalties, trusts including family trusts, family limited partnerships, estates and family farms.
I wonder how many teachers fall under this category and are not aware that they will be subject to these requirements? All monies go into the Distribution Fund, according to the Nevada plan, and are subject to collective bargaining by NRS 288. The initiative mandates that 50 percent of the state budget must be allocated to K-12 education forever. K-12 currently receives 35 percent of the state's general fund appropriations.
Higher education gets nothing. Elementary and secondary education teachers are the sole beneficiaries of this initiative. To initiate this program, $1.2 million will have to be extracted from the state budget. Not only are business owners going to be taxed 4 percent on business reporting over $50,000, this initiative allows for an increase on the business license tax from $25 to $25.50, a tax businesses are currently paying to support education in the state of Nevada.
I urge all business owners to make sure that you do not sign the petition currently being circulated. Educate your family, friends and employees on the inappropriateness of this initiative.
SHARON L. GRECIAN