John Smith writes a terrific article in today's LVRJ about how government is killing small business in Nevada. start with the new minimum wage and the higher fees and you get closures all around Nevada.
From John Smith and the LVRJ: In the endless battle for the unofficial title of Best Hamburger in Las Vegas, Kilroy's was a perennial top contender.
Shortly after it opened in 1991, the bar and grill at 1021 S. Buffalo Drive gained a deserved reputation for good food and friendly service. With its funky caricatures on the wall, it established its own identity above the haze of smoke-choked video poker caves that once seemed to inhabit every strip mall and street corner in the valley....
But it's more than that, Lampi says. If the government is truly interested in increasing employment, it can do more to help small bar and restaurant owners.
Back to those burgers. Lampi says Kilroy's bought $30,000 a month in groceries for its small restaurant, which employed 30. At its best, it grossed $1.5 million in food business in addition to its bar and slot profits.
The slumping economy changed everything. When the state instituted a $1-per-hour increase in the minimum wage, his bottom line was slashed by approximately $48,000 a year. That took the meat of the net profit out of the food side of his businesses and in 2007 made a very difficult decision to close the restaurants inevitable....
Kilroy's closed last year when they instituted the minimum wage increase of $1 an hour," Lampi says. Overall, "we laid off 40 employees. I basically haven't sent in this year $170,000 in sales taxes because of the closure."...
And don't get him started with the state's Clean Indoor Air Act, which compels bar and restaurant owners to either shut down their kitchens or spend thousands to enclose the smoke-approved bar area from the food service. By Lampi's count, those design changes cost Kilroy's $40,000.
Then he watched as other bar-restaurants ignored the law and greeted chain-smoking slot customers who were turned off by being encased in glass.
The minimum wage law in Nevada has been disastrous to Nevadans and it is a reason why there are few restaurants opening and many closing. Many restaurants, who were 24 hours have eliminated the night shift. Why? Because the new minimum wage law, which is $1 over the federal minimum wage, has been costing small businesses money. When you are on a very tight budget, you can't afford the extra costs the government imposes on business and so you have to close. I realize most liberals in government don't realize this, but it is the truth.
Ask the 40 people who got laid off from Kilroys how the new minimum wage helped them. I'm pretty sure they don't like it.
And Smith didn't even mention the new higher taxes business owners are going to have to pay for unemployment insurance. You can see more businesses closing up shop before the end of the year with even fewer businesses to take their place.
Government puts another business out of business.