Editorial: Pass taxes in a way that is fair

Friday, Feb. 7, 2003 | 9:33 a.m.

A majority of the Republican and Democratic candidates for the Legislature last year agreed that Nevada's tax system was not producing enough revenue to provide for education and other needs. Most candidates agreed that new and higher taxes were in order. After that, there were enormous points of contention. How much do we need? Which taxes need increasing? What new taxes should be passed? These and other questions elicited widely varying responses. In the end, however, there was this consensus: Any new and increased taxes must be "broad-based." This means that no one industry or segment of the population should be forced to shoulder a disproportionate financial burden so that the state's budget can be balanced.

In keeping with the broad-based consensus, legislative Democratic leaders are opposing Gov. Kenny Guinn's plan for tax increases to be readied for his signature in piecemeal fashion. A task force that met most of last year recommended several new taxes, including so-called sin taxes and entertainment taxes. Guinn wants the taxes on liquor, tobacco and entertainment (such as movie tickets) to be passed quickly by the Legislature. After his signature, the taxes could begin almost immediately. The revenue would provide an infusion of money that would shore up the state's books in the current fiscal year, which ends June 30. Assembly Majority Leader Barbara Buckley and Senate Minority Leader Dina Titus, however, are saying not so fast.

We share their view that new and increased taxes should be regarded as a single item. The concern is that the tax recommendations may be modified significantly once the Legislature's money committees, later in the session, decide on a total amount that needs to be raised. Proposed sin and entertainment taxes, affecting mostly poor people and working people with moderate incomes, should be eligible for across-the-board reductions as well if the total financial picture warrants it. Buckley, Titus and other Democrats are willing to budge only if Guinn can prove that the state desperately needs the new money now. In that case, they say, any tax increases passed piecemeal should expire July 1 unless all other parts of the taxpackage are enacted. They're right, on both accounts.