Steve Wynn told Nevada lawmakers he supports a "broad-based corporate tax."
Steve Wynn told Nevada lawmakers in a closed session that a broad-based business tax of 0.5 percent is the way forward for all businesses making more than $1 million a year. That's a relatively small $50,000 for a company just over the $1 million threshold, but for a large conglomerate like Wynn's own Wynn Resorts Ltd. Much higher, the company's annual revenue in 2012 was $5.2 billion. The proposed tax structure would cost Wynn $260 million annually in taxes, based on the company's 2012 earnings.
Wynn said he believes the right move is to eliminate the so-called modified business tax, also known as the payroll tax, entirely and replace it with his broad business tax proposal.
"Everybody will pay. It's as simple as that," Wynn, 71, said in an interview about expansion plans for his East Coast casino projects. "The answer is a narrow and broad answer. Everyone will pay 0.5% of gross income."
Casino industry in trouble
Wynn also reiterated previous comments about the industry he helped boost, saying casinos remain in "unhealthy shape" and will need more time to return to their pre-recession glory days. Currently, Nevada's gambling tax alone is 6.75%; well above what he considers the optimal value for a return to growth. Wynn claims these costs are killing the industry.
Like many top gambling operators, Wynn Resorts thrives on the vast sums of money in Macau, the world's most profitable gambling world. In fact, Macau now accounts for the majority of Wynn's profit margins, as is the case with many big-name companies such as Las Vegas Sands and MGM Resorts International.
In the first quarter of 2012, Wynn Macau's revenue increased 4.4% to US$992.1 million; in the first three months of this year, the gaming giant brought in a total of US$1.38 billion in revenue.
Power Broker Wynn
Wynn is undoubtedly a man who has as much influence as anyone in the casino industry. During a recent visit to Carson City, Nevada's legislative capital, he reportedly met not only with lawmakers but also with gambling lobbyists, with whom he shared his tax vision.
“In my opinion, it wouldn’t hurt to have a broad-based sales tax,” he explained. "It's like getting a flu shot. The needle is very thin and it doesn't hurt."
Of course, it’s not the needles that everyone is worried about; It is the amount of blood drawn in dollars.
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Source: www.casino.org
