AN OPEN LETTER to Warren Stephens, owner of the Review-Journal.
Dear Warren,
I hate to write this letter to you but it seems I have no choice. As the owner of the Review-Journal newspaper, you are ultimately responsible for its irresponsible actions and this latest one is, well, quite taxing. Nevada state law requires that I give you notice of any libelous activities in which your editors and reporters have engaged and that you correct and/or retract the offending statements. Pursuant, then, to the legal requirements imposed upon me, I hereby inform you that:
In last Sunday's R-J editorial, your newspaper lied about my actions as a member of the Governor's Task Force on Tax Policy for the State of Nevada. It is not the first time those ruffians of the Fourth Estate have tried to besmirch my good name but it is, as best I can tell, the first time they have done so in a way designed to not only do damage to my good character but also the good intentions of Gov. Kenny Guinn, the members of the state Legislature and the volunteer members of the task force. In short, you allowed Sherm Frederick and his editor to do their worst without any concern for the truth of the matters about which they wrote.
Now, Warren, we all know your newspaper's hatred of taxes, government and anybody who would suggest that either of the two are appropriate considerations in 21st century America. But that doesn't give you the right to sully people's names and reputations by telling lies, especially when you know the truth!
I normally don't care what your gang of ne'er-do-wells write in your paper (although you certainly should), but this time they have gone too far. In trying to hurt me, as they often try to do, your brain trust has ignored the basic tenets of good journalism by violating most laws that pertain to libel. They have also called into question the integrity of everyone involved on the task force and those who put them there. I don't know how you do business in Arkansas (where you live), but where I live, we have more respect for our citizens.
The law requires me to tell you where you have libeled me and to provide you with the facts so that you can make the appropriate retraction and correction. Your editorial said in part:
"... a gross revenues tax could cripple businesses which take in large receipts but generate slim profit margins, such as highly competitive grocery stores and car dealers." (At this point I should tell our readers that other states with gross revenue taxes are awash in car dealerships and grocery stores, most or all of which are doing quite well, even though they are paying taxes many times higher than what is being proposed.)
The R-J continues: "The immediate result will be special pleadings for exemptions from the tax.
"In fact, that's already started. Task force member Brian Greenspun, whose family develops real estate in the Green Valley area, immediately called for an exemption from a tax promoted by the panel as 'broad based' -- for whom? Why, for his own industry, of course.
"Real estate sales should be exempted from the new tax, Mr. Greenspun explains, because 'It is imperative we keep home prices as low as possible. The nature of our economy requires us to consider whether we are pricing lower income people out of homes.' "
Warren, when you are dealing with matters like taxes, quality of life, education, health care and other issues important to Nevadans, it is vital that you get the facts right and report them the same way. This your newspaper did not do. Perhaps it was their continued zeal in trying to make me look bad, perhaps it was their desire to poison the community against raising revenues needed to keep the state afloat. I don't know.
But what I do know is that they did it intentionally and that is not only wrong, it also is idiotic. I can't protect you from the idiocy but I can require you to fix the intentional wrongs for which you are responsible.
Toward that end, here are the facts:
At the task force hearing, the discussion centered on a definition of gross revenues. Included in the proposed definition was an exemption for real estate companies. After one member suggested that real estate sales be taxed like other businesses, I agreed. I opposed any such exemption and said the following:
"... I don't have an issue with imposing the same gross receipts tax on my development company ... I don't have a philosophical problem with that."
Then I discussed the nature of our economy and the concern I had for pricing lower income people out of the housing market. I finished with this: "I agree with the concept of everybody in the development business pay(sic) a gross receipts tax just like everybody else ..."
Warren, your reporter got it wrong in your Friday newspaper. The Sun on Friday afternoon had it right. And, yet, the R-J still ignored the facts. Even if the first publication was a mistake, the second time you got it wrong had to be intentional. You have ruined your credibility with the very people who read your newspaper, advertise in your newspaper and, for some unfathomable reason, rely on your newspaper for news.
Beyond all that, you have libeled me and you owe me a retraction and correction. Since I believe you to be an honorable person, I expect you to fix this mess pursuant to Nevada law.
And, Warren, I expect an apology.
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