SUN EDITORIAL:

Running on empty

Gov. Gibbons fails to recognize Nevada needs a broader-based tax revenue stream

Sunday, Aug. 24, 2008 | 2:10 a.m.

Gov. Jim Gibbons, a frequent target of criticism from university system Chancellor Jim Rogers for opposing new taxes, wrote Rogers on Tuesday that “the state needs to live with the revenue it receives from our current tax sources, which would be adequate to meet our needs if we managed our finances more responsibly.”

The problem with this statement is that it implies Nevada has an adequate tax revenue stream to begin with. Nothing could be further from the truth.

For too long, Nevada has implemented a Band-Aid system that relies heavily on sales and gaming taxes, creating an imbalanced revenue stream in which large retailers and other nongaming businesses have been off the hook. Yet these companies and their employees also use government services such as schools, roads and public safety.

What Gibbons fails to recognize is that Nevada has not maximized its revenue stream, not by a long shot. Past attempts to pass reasonable broad-based business taxes simply have been rejected out of hand because many Republican state lawmakers don’t want to step on any toes.

One former Republican politician who does make sense is ex-Gov. Kenny Guinn, who told Las Vegas Sun reporter David McGrath Schwartz for a story that appeared Thursday Nevada must do more than simply discuss ways to cut the state budget. Nevada must develop a long-term plan that addresses both the budget crisis and ways to rebuild services that have been cut, said Guinn, who presided over the state’s tax increase in 2003.

No long-term plan will succeed, though, unless Gibbons comes to the realization that Nevada’s tax revenue system is broken and must be repaired. Because the governor will not budge from his “no new taxes” mantra, we can forget about any long-term plan coming out of this administration.

Gibbons’ only strategy, which he plans to propose to the Nevada Legislature next year, is to place a harder cap on state spending. By ignoring potential long-term revenue options, the governor has demonstrated that he is not the fiscal leader Nevada needs to move forward.

Discussion: 9 comments so far…

By neiman1

8/24/08 at 3:18 a.m.

Suggest removal

People are shocked that the energy costs are killing Nevada. How can anyone visit when they are broke from playing no jackpots slots at home called gas pumps? When visitors quit we lose not only gaming taxes but few jobs, fewer shoppers, fewer taxpayers, so much fewer taxes. If we don't get American resources for American jobs we are going to get a LOT worse, and soon. Contact Harry Reid and tell him to quit meeting in Tahoe for pictures and go to Washington and have the Senate meet for drilling.

email link
http://reid.senate.gov/contact/index.cfm...

Las Vegas
Lloyd D. George Building
333 Las Vegas Boulevard South, Suite 8016
Las Vegas, NV 89101
Phone: 702-388-5020 / Fax: 702-388-5030
By Future2012

8/24/08 at 9:06 a.m.

Suggest removal

The Nevada Legislature next year has to have a 2/3's majority to pass a new long-term revenue bill, so they do not need Gibbons.

They can override his veto with that same 2/3's majority. This is totally in the hands of the Nevada Legislature, they do not need Gibbons approval.

Chancellor Jim Rogers need to stop the criticism of Gov. Jim Gibbons, and work the only group that counts, the Nevada Legislature.
By geezelouise

8/24/08 at 9:22 a.m.

Suggest removal

Has anyone checked his vision? I think he's legally blind.
By jfnance32

8/24/08 at 9:28 a.m.

Suggest removal

Hey attention all voters.......

The state Democrats, according to this article, want to raise taxes.
By Enough_Already

8/24/08 at 10:18 a.m.

Suggest removal

A broad-based tax is the responsible thing to do.
By jfnance32

8/24/08 at 10:47 a.m.

Suggest removal

State Democrats want to radically raise taxes on businesses during a recession. Sounds like a responsible thing to do. It will surely help with job creation in the state. LOL......I guess more private employees will just have to go on the unemployment line.

The state Democrats want to keep this a secret.

Shhhhhh.....a see some Dems under a rock.....What us.... raise taxes? Do not know what you are talking about? Please, move on to the next rock.
By Teaser

8/24/08 at 11:25 a.m.

Suggest removal

If you can recall Gibbons, you can recall legislators. A recall would, therefore, send a message that people mean business. And if Gibbons can be recalled, then this should be a jugernaut aimed at the first legislator in line who shares Gibbons' philosophy.
By jfnance32

8/24/08 at 12:19 p.m.

Suggest removal

I guess you and Rogers need to jump to it and start the recall and say any legislator that does not vote for radical new taxes increases is next.

Hop to it!
By KDR81

8/25/08 at 8:57 a.m.

Suggest removal

Nevada needs a broader tax stream like it needs a shot to the head. Give it a rest.

How many times are people going to make this claim with no proof. Here is the budget situation in pictures to make it easy to understand:

http://www.npri.org/blog/pictures-are-wo...