April 21, 2011

The Nevada Constitution has specific protections for mines that other businesses do not have. Then there is the net proceeds tax law that permits them to deduct just about everything to off set their tax liability to less than a half a percent at the worst. Those protections are also specific to mining and of course mining companies with their high paid lobbyists say they think they are paying enough or maybe even too much.

It's a scam and they know it.

They have now been caught taking deductions not specifically authorized by law, and even they admit it, sort of. They admit the deductions for employee housing, exploration and corporate costs associated with the World Gold Council are not related to extraction. Oh yeah, let's add employee severance costs, travel expenses for training, and costs to visit vendors. Who knows how many more things they are deducting!

None of these things have anything to do with extraction costs which is what the law is supposed to cover. Let's just end this scam and eliminate the net proceeds tax law, NRS 362.120.