In pushing their initiative to tax the income of Nevada businesses, the Nevada State Education Association has displayed their ignorance and lack of understanding of the world of business, how it operates, and what it contributes to society and the economy.
Elaine Lancaster, president of the association, was recently quoted by the media as saying she wasn't surprised that businesses and chambers of commerce were opposed to the tax initiative. "Business historically doesn't like to pay taxes," she said. And in an open letter to Nevada businesses, the union threatened that businesses who supported the campaign against their tax initiative would "run the risk of being exposed as an opponent of Nevada's public schools and Nevada's children."
It's been my experience that no group - be it business, citizens, teachers, or even union presidents, that likes to pay taxes. But at least business understands that some taxes are necessary to pay for the services required for government to provide. And business also understands the need for a return on investments - receiving a quality product or service for the money provided.
It's also been my experience that business sincerely cares about our education system - because business is so dependent on a quality educational system. Business has supported funding for new schools and for academic programs. Businesses contribute every day to the children and the schools of our state. Businesses are the first to be asked to contribute to school programs and activities like year books, band uniforms, athletic programs and equipment, and much, much more to make possible the hundreds of extra-curricular programs that students and teachers depend on to expand their educational experiences. And the union says that while these partnerships and contributions are welcome, they do not substitute for fundamental financial support. The union seems to think that the almost $6 million paid by Carson City businesses toward local school operating and debt reduction funds is not fundamental financial support.
What the union fails to recognize is that their business income tax petition penalizes those very same people who have consistently stood up for public education in Nevada. The same people that the Education Association targeted in 1988 for a corporate income tax, saying it is time for corporations to start paying their fair share". That effort led to the imposition of the Business Activity Tax that assess businesses $25 per employee.
Business will continue to show strong support for a quality education system for Nevada's students. Business will continue to support testing standards for students and for teachers. And we will continue to support merit pay to recognize and reward skilled and exceptional teachers.
But business, recognizing that need for return on investment, will not support throwing more money
at this problem without a method of accountability that addresses the need for real education reform. And we will not support this attempt by a special-interest union group to dictate the taxation policy of our state.
The union's income tax initiative is the wrong way to reform our educational system and is the wrong way to restructure tax policy.
