Editorial: Tax system in need of fresh look

Thursday, March 16, 2000 | 9:31 a.m.

Taxes. It's a subject that most politicians dodge as nimbly as they can, especially in a fast-growing state like Nevada, where tax revenues aren't keeping pace with the growing demand placed on government to provide services. During most of the 1990s nearly all Nevada politicians chanted the "no new taxes" mantra, freezing any serious discussion as to whether the state's tax system was fair or adequate.

Two pending voter initiatives, though, hope to change this. Sen. Joe Neal's proposal would raise taxes on the gaming industry to help pay for government services and public education. In addition, the state teachers union is advocating a net profits tax on businesses that would pay for public education. In response, the gaming industry insists that it currently pays a disproportionate share of taxes when compared to other businesses. Some nongaming businesses, meanwhile, worry that new taxes would hurt their ability to grow and, in turn, harm the economy. But if these sides refuse to budge at all, no one benefits, including the taxpayer.

Some hard decisions, then, are facing Gov. Kenny Guinn. Although Guinn told the Nevada Taxpayers Association Wednesday he would openly campaign against both initiatives if they are placed on the ballot, he did offer to work with these and other groups to develop a consensus at the 2001 Legislature to solve the long-term needs of the state. The state indeed is at a critical juncture and the governor seems ready for the task. The key to a solution, however, is for other policymakers to break out of their 1990s mold and earnestly search for equitable ways to pay for the demands created by our robust economy's growth.