(previously posted under Keith McCullough: 06/19/08 6:32 PM EST)
Boom or bust, State governments will continue to pump water from the spring, in this case extract tax dollars from their favorite well: the casino industry. There is a battle raging in Nevada on how to close the growing budget gap. The Teachers Union originally proposed a large increase in the gaming tax but compromised with some casino companies to offer an increase in the hotel tax. Terry Lanni, MGM CEO, opposes an increase in the hotel or gaming tax and suggested raising the payroll tax among other measures. Get used to this folks. Unfortunately, most state governments were unwilling to curtail spending growth during the most recent economic boon. With receipts likely going lower in many states, governments will need to find more revenue. We've watched this sitcom before and it's not very funny. If the gaming industry is already paying its fair share , its share is likely to get fairer. Whether it's Nevada, New Jersey, or the riverboat markets, someone's taxes are going higher. There is a break in the clouds, however. New markets are born out of the economic bust periods due to, you guessed it, the quest for new tax revenue sources.
Boom or bust, State governments will continue to pump water from the spring, in this case extract tax dollars from their favorite well: the casino industry. There is a battle raging in Nevada on how to close the growing budget gap. The Teachers Union originally proposed a large increase in the gaming tax but compromised with some casino companies to offer an increase in the hotel tax. Terry Lanni, MGM CEO, opposes an increase in the hotel or gaming tax and suggested raising the payroll tax among other measures. Get used to this folks. Unfortunately, most state governments were unwilling to curtail spending growth during the most recent economic boon. With receipts likely going lower in many states, governments will need to find more revenue. We've watched this sitcom before and it's not very funny. If the gaming industry is already paying its fair share , its share is likely to get fairer. Whether it's Nevada, New Jersey, or the riverboat markets, someone's taxes are going higher. There is a break in the clouds, however. New markets are born out of the economic bust periods due to, you guessed it, the quest for new tax revenue sources.
