Editorial: Shelve this tax break

Wednesday, Dec. 15, 2004 | 8:43 a.m.

State Sen. Bob Beers is proposing that Nevada taxpayers receive a $100 break from state government next year. The Las Vegas Republican's plan to give vehicle owners up to a $100 tax credit on their vehicle registration will sound inviting to other state legislators looking to score points with voters, but we're not so sure the public will find this such a great deal if it's given enough scrutiny.

Beers is touting the tax break because it's projected that state government will have a $320 million surplus at the conclusion of this fiscal year, which ends June 30, 2005. It should be noted, though, that the existing budget includes revenue that will soon vanish and will have to be replenished once the new year begins. For instance, in the next two-year state budget the state will be receiving $90 million less from the federal government because it is phasing out the estate tax, a share of which is distributed to the states. While the state's rainy day fund, which was drained by the Legislature in 2003, is expected to stand at $120 million when the Legislature convenes in February, Guinn says he wants to add more to the fund, a decision that would require more money to be drawn from the surplus. That would be a wise move to better prepare us in case the state had to deal with an emergency caused by a natural or man-made disaster. The surplus doesn't look as big any more whe! n these other budgetary factors are considered.

It's also too soon to talk about offering tax breaks before we even know in detail what specific funding needs will be facing the nation's fastest-growing state. About two-thirds of the state's budget goes to pay for public education and health care for seniors. And, not so coincidentally, Nevada's population of children and seniors is surging, creating a strain on government services. The budget that the Legislature passed for education last year just kept education's head above water and didn't come close to providing the level of funding that is required to educate this state's children. As Guinn is building his two-year budget for the upcoming Legislature to consider, he must account for an expected increase of 35,000 additional students statewide. This statistic alone is evidence that this is hardly the time to be talking about tax breaks considering the pressing needs facing the state.

Human nature being what it is, however, there are many people who want more government services but don't want to pay for them. The people with this mind-set obviously would favor Beers' tax-break proposal. But what we really need as the Legislature prepares to convene in February is for legislators to embrace the conviction that we're a community. That means, in turn, rejecting proposals that reward immediate gratification. We should instead take a long view, one that acknowledges that sacrifices sometimes are necessary to improve this state for all Nevadans.