Is it time to raise the corporate tax rate on the resort industry?


Nevada Congressional Democrats are silent on Pres. Joe Biden’s proposal to raise the corporate tax rate to help pay for legislation designed to fight poverty, boost working families, expand education and health care, and tackle the climate crisis .

But on Tuesday, the senior member of the delegation was seeking additional relief for Nevada hotel companies.

While Nevada has seen an increase in leisure travel this year, business and international travel still has not returned to pre-pandemic levels, threatening Nevada’s economic recovery, ”Senator Catherine said Tuesday. Cortez Masto during a Senate hearing with Treasury Secretary Janet Yellen and the Federal Government. Reserve Chairman Jerome Powell.

According to a statement from his office, Cortez Masto urged officials “to ensure that the Federal Reserve and the administration work together and do everything possible to help the hospitality industry recover.”

“Senator Cortez Masto has led bipartisan efforts help the hotel industry recover from the coronavirus pandemic, ensure the flexibility that the gaming industry so badly needs and deliver $ 750 million in funding from the Economic Development Administration to help states like Nevada that have been affected by lost revenue in the tourism and travel industry, ”the statement said.

Cortez Masto, who faces a challenge next year from Republican candidate Adam Laxalt, has not responded to inquiries about his stance on raising the corporate tax rate on a resort industry that has failed recovered, as the administration proposed in its legislation to spend $ 3.5 trillion over ten years to revamp social service programs, establish universal child care, expand and improve education and health care, and fight against climate change.

The Biden administration’s proposed increase from 21% to 26.5% for top-earning companies is lower than the 28% rate Biden originally sought, and well below the top rate of 35% before the era. Donald Trump and Republicans in Congress reduced it to 21% in 2017.

Other members of the delegation were also reluctant to discuss the tax component of the so-called reconciliation bill Democrats are trying to agree on this week – especially the prospect of higher tax rates. companies for the Nevada resort industry.

But their staff were eager to remember the pandemic relief they had delivered.

When the original CARES law excluded small gaming companies from receiving aid, Rep. Dina Titus (D-NV) “had that changed so that they could benefit from these lifelines,” the spokesperson said. word of Titus, Blake Williams. Titus, who faces a main challenge from Progressive Democrat Amy Vilela, declined to comment.

Can the hospitality industry, the backbone of Nevada’s economy, withstand a corporate tax rate hike?

The Nevada Resort Association referred the Current to the American Gaming Association, which manages federal legislation for the industry. The AGM did not respond to requests for comment.

Tax Analyst Jeremy Aguero, who did the trick last year for the relief of the gaming industry on behalf of the Nevada Resort Association, did not respond to a request for comment.

MGM Resorts International, which this week announced it had bought the Cosmopolitan’s casino operations for $ 1.625 billion, the latest in a string of high-stakes deals on the Las Vegas Strip, declined to comment.

A spokesperson for Las Vegas Sands, the parent company of the Venetian and Palazzo, also declined to comment. The company struck a deal in March to sell its Las Vegas properties for $ 6.25 billion.

A spokesperson for Wynn Las Vegas and Encore also declined to comment on the proposed increase in the corporate tax rate.

Caesars Entertainment did not respond to requests for comment.

Resort company employees stand to benefit significantly from the provisions of the corporate tax rate hike, which would help fund an overhaul of programs designed to give Americans financial leeway, especially parents of young children who have struggling to afford the high cost of childcare.

Nearly nine in ten households would see a tax cut in 2022 as part of the Biden proposal, according to a report on citing the Center for Fiscal Policy. By the tenth year, a quarter of households would see their tax bill go down.

While Nevada’s resort industry and its delegation to Congress are reluctant to talk about an increase in corporate taxes, some businesses across the country are decidedly less timid. The United States Chamber of Commerce and many industries, including tech companies and banks, are pushing against the increase in the corporate tax rate.

And the Business Roundtable, a powerful association of CEOs of the nation’s largest corporations, has been battling corporate tax rate hikes for months and reiterated that opposition in a report on Tuesday.

Nevada Democrats could be spared from having to take a stand on the corporate rate hike. A handful of Congressional Democrats, including Arizona Senator Kyrsten Sinema and Joe Manchin of West Virginia, have indicated they will not support increasing corporate tax rates, at least not as much as proposed. administration. And in a divided Senate and a heavily divided House, a handful of Democrats can exert disproportionate influence over final legislation.

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