NLV assemblyman says tax hike a must

Monday, Nov. 27, 2000 | 11:37 a.m.

CARSON CITY -- Assemblyman Tom Collins, D-North Las Vegas, says he "hopes the Legislature has the guts" to approve increased taxes this session to pay for lagging mental health services, education and salary increases for state workers.

Collins, a small businessman, has asked for a bill to scrap the business tax that amounts to $100 a year per employee. But that tax would be repealed, only if a general business tax is imposed.

An initiative petition, proposed by the schoolteachers' union in Nevada, calls for a 4 percent tax on business profits after the first $50,000. And it would all go into public education.

Collins has become one of the first, if not the first, to suggest a general business tax.

"I can pay 4 percent off my net. If we can't do it, we shouldn't be in business.

"If we can't support our community, then we should not be in business," said Collins, who was re-elected to a fourth term this month.

Collins objects to the teachers' tax petition because all of the money goes to education. The Legislature and the governor should decide where to spend the money that comes from any increased taxes.

Mental health services, he said, have never recovered from the cutbacks in the early 1990s during an economic downturn. Schools need more money. And pay for state workers needs to be raised because of the high turnover of employees who go to work for the cities and counties at higher wages.

He said the decision by Gov. Kenny Guinn to leave more than 1,000 positions vacant in state government was "stupid." He said this cuts down the services that should be available to the public.

"I want a clean tax ... I just don't want to be double-taxed," Collins said. "We need more revenue, not less. I'm not trying to cut revenue. I'm just trying to clean it up."

Former Gov. Bob Miller wanted to enhance his legacy by not raising taxes in his final years in office, Collins said.

Guinn also opposed any tax increases.

"We have got to quit procrastinating," Collins said, adding that 90 percent of the people who come to Nevada come from a state that has an income tax or a higher property tax. The gaming industry, he said, has indicated a willingness to pay more taxes if they are levied on all business.

Chambers of commerce and some small businesses have filed suit in Carson City to invalidate the initiative petition of the Nevada State Education Association. A decision is expected soon from District Judge Mike Griffin, and the case will be appealed to the Nevada Supreme Court whichever way it goes.

Collins also suggested that Clark County has the money to assume some of the state programs.