In many ways the economic well-being of Las Vegas and Nevada is based on a race to the bottom of human decency. Nearly a century ago, it was the enactment of laws allowing open gambling, quick divorces and even quicker marriages that jump-started what had been a dying 19th century financial model based on little more than mining and ranching. Suddenly, folks had a reason to come here and cough up some of their money with little in the way of inhibition.
The addition 50 years ago of legal houses of prostitution in a number of Nevada counties (not containing Las Vegas or Reno) added to that perception. The lack of a state income or corporation tax insured that the public education system would remain underfunded and dreadful, a scenario welcomed generations ago by political leaders (although efforts are being made to fix that now). This tax structure is much to the benefit of well-heeled retirees or even moderate retirees with grown kids fleeing states with good school systems–paid by state income taxes, be they high or low.
Here at the New to Las Vegas world headquarters I’m watching the latest phase of Nevada’s ability to profit from the foibles of others. Over the past several decades the Silver State has been changing its corporation laws to make it easier for officers and board directors of public corporations to avoid accountability by shareholders (perhaps you with a retirement account) for many of their actions. Continue reading