Anti-tax forces stirring as lawmakers convene

Erin Neff

Tuesday, Feb. 4, 2003 | 11:22 a.m.

CARSON CITY -- Honor guards, smiles, handshakes and 63 white roses welcomed family and friends of lawmakers to the capital on Monday, but outside the cloistered halls of the Legislative Building a less cordial atmosphere was building.

The 2003 Legislature was greeted not with applause by some, but with admonitions not to raise the $1 billion in new taxes proposed by Gov. Kenny Guinn. The state is facing a $706 million deficit to cover existing programs.

The Nevada Policy Research Institute was ready with two reports, "The Destructive Impact of a Gross Receipts Tax" and "Nevada's Chronic Overspending and How to Deal with It."

The NPRI, a public policy nonprofit group that "seeks to promote individual liberty," said the reports are not intended to aid or hinder the passage of any legislation.

The report on the gross receipts tax claims the proposed one-quarter of 1 percent levy on business receipts over $450,000 would "operate like a general depressant across the Nevada economy."

Steven Miller, NPRI's policy director, said the point of the reports is to show options.

"We not only identify the problem, but suggest two specific ways in which government can be reformed," Miller said.

NPRI suggests the Legislature should deconsolidate both the Clark and Washoe county school districts and allow Nevada parents to choose where their children attend school.

Political parties also were getting into the act, with Republicans outside the legislative process questioning those within.

Dan Burdish, who authored an anti-tax resolution for the Clark County Republican Party, has conducted an unscientific phone poll of residents on behalf of his group called Nevadans for Tax Restraint. The poll asks if "you agree the budget ... should be increased 37.2 percent."

Those opting against outnumbered those who stood behind the governor by a 3-to-1 margin, according to Burdish.

Burdish also plans to circulate a petition for an initiative forcing any tax measure approved by the 2003 Legislature to go before the voters in 2004 for an up or down vote.

Third parties, like the Independent Americans, are also weighing in on the debate largely to raise the status of their party.

"These extravagant tax increases proposed by Nevada's Republican governor are just one more example of why there's not a dime's worth of difference between the leadership of the Republicans and Democrats," Independent American Party State Chairman Joel Hansen said.

Legislative leaders today said any outside pressure to block the governor's tax proposal would be considered but would not sway any decisions.

"That's why we're here in Carson City," Assembly Speaker Richard Perkins, D-Henderson, said. "We'll have those discussions about whether there is a need, and if there is, what we do to meet those revenues."

Senate Majority Leader Bill Raggio, R-Reno, was more direct.

Raggio said he believed the need has already been shown to support some tax increases, including increases to cigarette and liquor taxes. Furthermore, Raggio described the current budget deficit for the fiscal year ending in June as dire.

"We have got to pass some of those taxes by March 15 or there will be layoffs, cuts and serious program implications," Raggio said today.