Editorial: Tax plan offers only a Band-Aid

Monday, April 29, 2002 | 8:53 a.m.

The state needs more money. Schools, prisons, social services and transportation are among the areas that need more funding as the state's growth rate accelerates. Unfortunately, the state's current tax structure provides adequate revenue in the good times and wholly inadequate revenue when the economy takes a plunge, as it did after Sept. 11. Gov. Kenny Guinn says the state is facing an immediate shortfall of $200 million and that the deficit will continue to grow in future fiscal years if more tax money isn't forthcoming. Guinn has had a task force studying the issue for the past five months and it will prepare proposals for consideration by the 2003 Legislature.

In addition to conducting its own research, the task force is listening to individuals and groups that have their own views on what the state should do to bolster its treasury. Last week the Progressive Leadership Alliance of Nevada announced its solution to the state's looming budget deficits. The alliance, consisting of the American Civil Liberties Union of Nevada, labor groups, the Nevada Trial Lawyers Association and numerous other organizations, came through with a proposal it says would add $932 million to the $1.7 billion a year the state now collects through taxes. While all proposals are welcome, this one just offers another Band-Aid.

The proposal is not original or creative. It depends entirely on old notions that have been around for decades. It resorts to "sin taxes" levied on alcohol and cigarette sales and the old standby of penalizing people who earn decent salaries and businesses that show healthy profits. While the tax force may want to incorporate portions of the proposal into its final recommendations, the projection of perpetual deficits is a wound needing far more than a Band-Aid. For long-term financial health, the state needs broader-based treatment, one affecting all citizens more equally.

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