Editorial: A state of chaos

Sunday, Nov. 25, 2007 | 1:50 a.m.

Saying the state's economy is "in a state of chaos," MGM Mirage boss Terry Lanni is calling for a broad-based business tax - putting him at odds with Gov. Jim Gibbons.

Gibbons will be among the biggest obstacles for Lanni, and that is ironic. Lanni helped elect Gibbons, whose position was made abundantly clear as his "no new taxes" pledge became a mantra during last year's campaign.

Lanni's call for a new tax comes in response to proposed initiatives to raise gaming taxes.

Those proposals have become part of the larger debate about the shortfall in state revenue, which is based on volatile gaming and sales taxes. The state teachers union wants to raise gaming taxes. Gibbons' response is to cut the budget. He will not discuss a new tax structure. He will not discuss the inadequacy of the state budget, which has left our schools and social services in poverty.

Lanni, however, sees this as part of a nasty cycle. Revenue turns soft and a governor cuts the budget. Then the Legislature or voters pass an incremental tax increase, and still government services remain inadequate.

"We must fix the recurring chaos created by this flawed system," Lanni said in a speech this month to the Nevada Development Authority. "We must all face up to the reality of the needs of the state of Nevada in a new century and beyond."

For Lanni, there is a pressing concern. Two planned initiative petitions would hike gaming taxes to pay for needed services. He hopes a reasonable tax spread out among enough businesses, while protecting small businesses, will suffice instead. Lanni believes that can happen without drastically increasing taxes or eroding Nevada's business-friendly climate.

That will be a struggle given the vocal critics of government who think they are entitled to all the benefits of government services - from police protection to public roads - without paying a dime.

Lanni pledged the resources of his company - the state's biggest taxpayer - toward changing the tax system, and he will need all those resources.

"If we all want to share in the ability to prosper in Nevada's vibrant environment of growth that shows no sign of slowing down," Lanni said, "we all must share in the responsibility of reliably maintaining the infrastructure to support this environment."

We hope Gibbons is listening to his patron.