Reno, Nev., (February 27, 2014) – The Economic Development Authority of Western Nevada (EDAWN) Board has voted to take an active role in the opposition of the Margins Tax / The Education Initiative.
The Board takes this position after receiving testimony from both sides of Margins Tax / The Education Initiative and conducting a thorough review of available materials. The main reason for taking this position is, the EDAWN Board believes this initiative will adversely impact EDAWN’s ability to attract companies, retain existing companies, and facilitate entrepreneurial job creation.
Additional considerations include:
1. Several companies considering relocating to Nevada have indicated that they are delaying their relocation decision pending the outcome of this initiative and some have also indicated that they will not move to Nevada if this initiative passes. Many existing companies and entrepreneurs have also made it clear that they will relocate their business out of the state if it passes.
2. This initiative will make it more difficult to diversify our economy and much more difficult for entrepreneurs to grow their business here. The job loss and declining entrepreneurial activity will drive our young talent and college graduates out of the state.
3. While EDAWN agrees that our education system is significantly underfunded, in comparison to the national average, the proposed margin tax will not adequately address the problem. There is no structure to ensure that the funds raised through the margins tax will actually increase the total amount of funds contributed to the education system and there is no provision to address the school infrastructure needs in our region.
4. The education of our future workforce is critically important to EDAWN, as an educated workforce is essential to the attraction and retention of the quality companies and jobs, to grow and diversify our economy.Additionally, there is no doubt that a high-quality education increases the earnings of individuals and the economic health of the community.
Steve Anderson, the Chair of the EDAWN Board said, “EDAWN is very selective in engaging in political issues and initiatives but after a thorough investigation into the Margins Tax we believe that this initiative will adversely impact on this organization’s ability to effectively accomplish its primary mission, quality job attraction, retention and entrepreneurial job creation.”