Scare tactician

Fri, Jun 12, 2009 (3 a.m.)

To hear Gov. Jim Gibbons tell it, all anyone cares about are taxes. Since the Legislature passed a budget with a series of incremental tax increases, Gibbons has loudly complained to anyone who would listen.

He has called the increases “job killing” and “economy crushing,” and even suggested that the increases would cause companies to lay off people.

That is ridiculous. Business lobbyists were involved in shaping the legislation, making sure the taxes wouldn’t swamp small operators. There is no reason to think the tax package will have a terrible effect on business.

Take a look at the state’s recent history. The Legislature passed major tax packages in 1991 and 2003. Despite all the doom-and-gloom assessments at the time, businesses and the economy still boomed afterward.

However, in Gibbons’ myopic view, any tax is a bad tax. He campaigned against taxes in 2006 and, when facing a huge budget shortfall this year, refused to seriously discuss the issue. Instead, he proposed gutting education along with necessary government services. Thankfully, the Legislature made sure the services weren’t decimated because that would have had a serious effect on the business community.

Government services play an important role for businesses. For example, schools educate the workforce, roads provide transportation, and infrastructure gives businesses the power, water and other necessities they need to operate. Savvy executives study those things when they consider moving their operations.

Nevada’s economic development efforts have been frustrated as some companies that have been courted don’t think the state has enough well-trained workers to meet their needs. That is not surprising considering the state hasn’t put a premium on education.

Gibbons’ complaints may cause further damage to the state’s ability to attract businesses. In his hyperbole, he is broadcasting to any who would listen the false idea that Nevada’s taxes are too high. That will surely drive people and businesses away.

The truth is that Nevada still has a low per capita tax rate and offers a climate incredibly friendly to business. Unfortunately, it also has a governor who doesn’t have the sense to realize that.