Taxes cause political peril

Erin Neff

Friday, Jan. 24, 2003 | 4:54 a.m.

WEEKEND EDITION: Jan. 26, 2003

Nevada's Democratic Party couldn't muster a candidate for governor last year, couldn't win a single statewide office and couldn't even define what the party stands for.

On the surface, as the Nevada Legislature readies for what is arguably its most important session, it appears nothing has changed for the Democrats.

Their legislative leaders have not come forth with a tax plan to offer as an alternative to Gov. Kenny Guinn's, and the party hasn't shown unity behind anything.

But that's also a fairly calculated move as Guinn, a Republican, struggles more with those in his party than outside.

"The governor has been pretty pointed to his own party with his comments," Senate Minority Leader Dina Titus, D-Las Vegas, said. "Democrats aren't going to line up behind the governor until he's able to bring the Republicans along."

In other words, why not sit back and watch the fireworks for the first several weeks of the legislative session?

Eric Herzik, interim dean of University of Nevada, Reno's College of Arts and Sciences, said that since Guinn has to sell his $1 billion tax proposal to his own party, Democrats have time to regroup.

"They're not the focus right now, and the heat is off of them," Herzik said. "Why would they want to risk their own political futures by being the lead party that says, 'I want to raise your taxes'?"

Assembly Speaker Richard Perkins, D-Henderson, is the Democrats' top leader in Carson City, and the only one to date who has said anything about tax policy heading into the Feb. 3 session.

In early December Perkins held a press conference to denounce business leaders who were opposing a proposed gross receipts tax two months before lawmakers even had the governor's budget.

"Ironically, at the end of the last Legislature, big-business leaders expressed to me their desire to be a part of a solution to our budget crisis by contributing more across the board to our state's coffers," Perkins said. "What I've seen lately from them better reflects an attitude of hide-and-seek."

Perkins also pledged that any tax bill leaving the Assembly "must and will" feature a broad-based business tax.

But the speaker, a moderate Democrat who is planning to run for governor in 2006, isn't willing to risk his own political capital by being tagged a tax-and-spend liberal. That's why he hasn't completely leapt aboard with Guinn.

"The Democrats are not going to jump on board and have the Republicans pull the rug out from under them at the next election and paint them as tax-and-spend liberals," said Michael Bowers, a University of Nevada, Las Vegas political science professor.

Perkins said that ultimately the legislative session won't play out along party lines.

"I may be a Democrat from Henderson, but I need to know what's important to the citizens in Winnemucca or Lake Tahoe," he said.

Pete Ernaut, Guinn's former chief of staff and a top Republican lobbyist, agrees.

"Historically, you see 1,200 bills in a session, and there are usually only about a dozen that you have to throw your partisan jersey on for," said Ernaut, also a former assemblyman and legislative leader. "This session, the whole tax package and budget talks will be much more influenced by leadership than by party."

And while Perkins will no longer lead a large majority in the Assembly, he could still have an easier time than Guinn or Senate Majority Leader Bill Raggio, R-Reno.

Guinn is not only battling those within the Legislature who believe there is more that can be cut from programs, he is fighting with Republicans statewide over his proposal.

"I don't think he could get elected dogcatcher right now on a Republican ticket," said North Las Vegas resident Harold Wilson, a lifelong Republican who voted for Guinn. "He didn't say anything about taxes during the election, and now all of a sudden $1 billion?"

In Clark County, the GOP's Central Committee last week adopted a resolution urging Republican lawmakers to oppose any increases in existing taxes or the imposition of new taxes.

"I've lived in this town since 1969 and I've voted for every bond issue that's come along," said Dan Burdish, a GOP activist and author of the resolution. "I'm not against paying for services. I am opposed to growing state government at a rate of 37.2 percent."

Burdish said the governor's proposed budget for the next two fiscal years shows a 37.2 percent increase over the current biennium's budget.

Douglas County Republicans have also sent a letter to lawmakers opposing any tax increases.

The split in the Republican ranks is something UNLV political science professor David Damore thinks will help the Democrats.

"If they play their cards right they could end up being OK," Damore said. "If they can stay unified they can probably end up the better of the two."

Any tax proposal requires a two-thirds majority in each chamber to pass. In the Republican-controlled Senate, eight senators could kill a proposal; in the Democratic-controlled Assembly, it would take 15.

"The Democrats could go to the governor and say, 'We can give you this many votes, but we want this and that and the other thing in exchange,' " Damore said. "They could definitely get something out of this session."

Democratic leaders don't want to see the 2003 session as a political opportunity, though, Perkins said.

Perkins said that during his time in office he has rarely had any contact from the state Democratic Party on legislative matters despite the fact that he has served under party chairmen such as Rory Reid, son of the U.S. senator, and Sen. Terry Care, D-Las Vegas.

"We're just not a partisan group, and it's going to take bipartisan support to pass any tax proposal," Perkins said.

Care, who is resigning as state party chairman this week to concentrate on the Legislature, said it is too early to tell how anything will play out.

"You don't want to just sit there idly without commenting on anything," Care said. "But at the same time, you don't want to rush out there with a plan without deep and deliberative consideration.

"That could come back to hurt us," Care added.