Critics bash tax initiative

Erin Neff

Wednesday, Feb. 21, 2001 | 9:45 a.m.

CARSON CITY -- Opponents of the teachers' tax initiative spent hours Tuesday testifying about why a proposed tax on business profits would harm mom-and-pop stores and the state's ability to attract new companies.

During the first 90 minutes of testimony before the Assembly's Taxation Committee, a select group of members of the Nevada Pro-Education Alliance gave pointed testimony about why they said the initiative is "flawed."

Lillie Englund, founder of a private school in Las Vegas, said that while she favors increasing funds for public schools, she believes the proposed tax on 4 percent of business profits over $50,000 is the wrong answer.

"This is not the best way to proceed," Englund said.

Representatives of chambers of commerce, farm bureaus and small business trade groups at times during the three-hour-plus hearing called the measure "vague," "dangerous," and "ill-conceived."

Tuesday's hearing was a chance for opponents to have their say after last week's testimony by proponents of the Nevada Tax Fairness and Quality Funding Accountability Act.

The bill, sponsored by the Nevada State Education Association, aims to raise $250 million in tax largely to fund teacher salaries.

Samuel McMullen, a lobbyist for the Las Vegas Chamber of Commerce, said the initiative reads as if drafted by "a back East law firm handing it off to a Nevada law firm and having trouble melding it together."

When asked by Assemblywoman Vivian Freeman, D-Reno, what the chamber and other opponents would propose instead of the initiative, McMullen had few answers.

"If there's a good issue, we'll be there," McMullen said.

The staunchest criticism of the initiative came from Carole Vilardo, president of the Nevada Taxpayers Association, who said the petition fails to address the state's flawed tax structure.

Vilardo said the state should periodically review tax structures.

"Fair tax, like good tax. is an oxymoron," Vilardo said. "The best you can do is come up with an equitable tax. Otherwise people will just argue, 'Don't tax you, don't tax me, tax the guy behind the tree.' "

A series of small business owners and trade representatives testified against the measure, many of them complaining about drop-out rates, reading abilities and a lack of phonics education, with a tad of union bashing thrown in from time to time.

One Reno deli owner told the committee: "The only advocate I have is myself, not a school board, not a teachers' union."

One Las Vegas man, testifying via videoconference from the Sawyer State Office Building, argued against the tax after condemning federal tax laws and claiming he doesn't pay federal income tax.

Teachers closed the testimony with short rebuttal to some of the opponents.

Lawmakers must decide on the initiative within the first 40 days of the session. If the measure fails, it will be placed on the ballot for voters in 2002.