By Leigh McIlvaine, Reno Gazette-Journal
As Nevada competes for a new Tesla battery factory, we write to say that tax incentives are not a “game.” Big, long-term decisions about whether Tesla pays taxes and how much will have real and lasting consequences for Nevada’s future economic health.
It was recently argued that tax breaks are necessary to help companies “control costs.” But even the biggest incentive packages have only a minimal impact on business costs. That’s because all state and local taxes combined make up less than 2 percent of the average company’s overall cost structure — a tiny amount compared to expenditures on labor, occupancy, equipment, materials, energy and logistics. The average manufacturing plant spends nearly 75 times more on labor than it does on property taxes.
Continue at McIlvaine: Decisions on incentives have consequences.