The truth about taxes

Friday, July 2, 2010 | 2:01 a.m.

You’ve surely heard the complaints about the terrible tax burden here in Nevada by now. The Tea Party crowd has pushed the line that government is too big and people are overly taxed, fanning the flames of voter anger.

But the facts don’t support their arguments. A recent survey of the other states and the District of Columbia paints a much different picture: Nevada ranked 50th in tax burden. As David McGrath Schwartz reported in Thursday’s Las Vegas Sun, a study by the nonprofit Taxpayers Network shows that Nevada’s state spending grew slowly and its funding on social services is among the lowest in the nation.

Senate Minority Leader Bill Raggio, R-Reno, has served in the Legislature for 38 years — longer than anyone in Nevada history — and is recognized as the leading expert on the state budget. Raggio said state government is lean.

“People keep on being fed misinformation,” he said. “I don’t think they understand the true situation of what the tax burden is in Nevada.”

However, the perception that Nevadans are overly taxed by a “bloated” government remains alive in voters’ minds. “I would argue that Nevada is No. 1 in anti-tax, anti-government sentiment,” said historian Guy Rocha, the retired state archivist. “It drives the political agenda.”

Part of the problem is that people who move here from other states with higher tax rates come with preconceived notions about government and “out-of-control spending.” Add that to the state’s libertarian bent and the general anger with the economy and it’s fertile ground for the anti-government crowd.

Government-bashing has become a conservative campaign theme — look no further than Tea Party acolytes Republican Gov. Jim Gibbons and GOP Senate candidate Sharron Angle. They never let the facts get in the way of their rhetoric.

But this is not new. For years conservatives and libertarians have spread fear of taxation and government throughout the state. As a result, there hasn’t been the political will to do the right thing and adequately fund government. After all, if people believe the state spends so much, why would lawmakers take the risky political step of increasing funding for schools or social services?

Because of that lack of will, Nevada’s services are among the poorest in the nation. The schools, for example, don’t get enough money and student achievement has been subpar. Other necessary services, including roads, transportation and public health, have also suffered.

It is only expected to get worse. When the Legislature convenes next year, the state budget is expected to have a $3 billion deficit. There won’t be many easy choices — lawmakers have spent the past few years making cuts. Sadly, this all comes as demand for government services is increasing because of the economic downturn.

It’s time to have a serious — and honest — discussion about what is the acceptable level of government services before the Legislature meets next year. The actions taken by the Nevada Legislature have a long-lasting effect, and the decisions lawmakers make should be based on the facts, not the harmful fantasy that state government is big and taxes are high.