Editorial: Governors blink on tax issue

Wednesday, Feb. 26, 2003 | 9:06 a.m.

The nation's governors are in Washington for their annual winter meeting at a time when states are collectively reeling from deficits in the $80 billion range. In Nevada and other states, people are being told that increased local taxes, reduced services, or both, are in store for them as legislatures and governors work overtime to balance the budgets. The worsening economy is an underlying cause of the deficits. Aggravating the situation, however, is the failure of federal funding to keep pace with current costs. Education, health care and homeland security are the areas seeing the most need for increased funding and the most stagnation from Washington. The governors formally met with President Bush on Monday and had an opportunity to say with one voice that the states need help fast. Unfortunately, they let the opportunity pass.

Gov. Kenny Guinn, for example, came away from the meeting saying that he supports the president's drive for a new round of tax cuts. Two years ago Bush shepherded through Congress tax cuts exceeding $1 trillion and now wants another $674 billion in federal taxes cut over the next 10 years. Guinn's position is ironic. At a time when the federal government is experiencing war-driven escalation of deficits, Bush is proposing tax cuts. At a time when Nevada is experiencing growth-driven deficits, however, Guinn is (correctly) proposing tax increases. He let the president off too easily, as did the governors as a group. They should have approved a statement, one citing specific numbers, detailing areas where the federal government should ante up.

Guinn has been a strong leader in Nevada on the need for new and higher taxes. We wish he and his colleagues would show more leadership in Washington, by firmly telling the president that his tax cuts will not offer what is needed most -- immediate economic relief.

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