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By Anjeanette Damon (contact) 
Monday, June 6, 2011 | 12:36 p.m.
Sun Coverage
Sun Coverage
The Senate voted 15-6 today to pass legislation extending the 2009 tax increases, sending the last major bill implementing a hard-fought budget compromise to Gov. Brian Sandoval.
In a series of speeches before the vote, senators from both sides acknowledged promises made and broken for the good of a compromise that will mean significant cuts to education and government services, but will keep the state running for another two years.
“I didn’t expect to be in the position I’m in now, ultimately breaking the promise I made to a lot of people not to lift the sunsets,” state Sen. Ben Kieckhefer, R-Reno, said before voting in favor of Assembly Bill 561, which will add $620 million to the $6.7 million spending compromise. “I don’t do it lightly. But I believe when the Supreme Court decision came down, the facts that led me to my decision changed and I needed to reevaluate the funds.”
The Nevada Supreme Court decision prohibiting the state from taking local tax dollars was catalyst for the budget compromise, forcing Sandoval to replace $656 million in local revenue by extending the 2009 tax increase - a reversal of his own promise not to do so.
The budget compromise split the Republican caucuses in both houses. The agreement was opposed by Republicans who signed pledges not to raise taxes; and others were unhappy with the policy changes Democrats made in exchange for lifting the sunsets; and some didn't believe the court decision opened such a big hole in the budget.
“Last year I promised my constituents I would not support lifting the sunsets,” said Sen. Barbara Cegavske, R-Las Vegas. “My constituents believed me when I said I would fight for the repeal of the 2009 (payroll tax) increase. I told them if they sent me to Carson City, I would uphold my word.”
Cegavaske, however, stopped short of criticizing the governor or the four Republican senators who voted in favor of the budget: “I fully respect those who changed their position on taxes,” she said.
The same lawmakers who voted against the five spending bills, which received final passage late Sunday, voted against the tax bill.
Although the Democratic majority remained united behind the budget compromise struck by legislative leaders, none appeared happy with the deal.
Sen. Mike Schneider, D-Las Vegas, grudgingly supported it after describing the process as negotiating “with a used car salesman” and leaving with a “clunker.”
Senate Majority Leader Steven Horsford, D-North Las Vegas, acknowledged Democrats also had to back away from their promises to permanently reform the state’s tax structure. “While this is not perfect, it’s necessary for the proper funding of the budget,” Horsford said.
Lawmakers will continue work until final adjournment at 1 a.m. Tuesday. To complete funding the budget, they must pass a bill raising taxes on the mining industry and another sweeping unclaimed casino winnings into state coffers.
Lawmakers also are finishing work on the policy changes Republicans demanded in exchange for supporting the tax extension, including a measure limiting collective bargaining rights and another changing construction defect laws.
High tax places have lower unemployment and solid real estate prices.
Switzerland 4% unemployment
Australia 5% unemployment
Paris, France 22% increase in real estate prices last year
high tax, high education, high infrastructure spending equals low unemployment and high prosperHty.
Low tax bar stool thinking doe not cut it.
Canadian bank failures 2007-2010: 2
American bank failures 2008-2010: 322
And we are told Canada is bad because it is "Socialist". Their Real Estate Market didn't fail either.
Eight years of prayers by George W. Bush, but the fact is obvious that it was bin Laden's prayers that were answered, not those of Bush. Go Figure.
Hey Ed and Jon,
By all means feel free to move to those countries you just spoke of. Tell us how great they are when you get there. Don't talk about the greener grass, go give it a shot. It kind of reminds me of Sandoval's argument against sick days for state employees. He compared the western states and had to make us closer to what everyone else does (on sick leave). Don't compare us on the other issues though, just the ones that you can use for your advantage.
I could take all kinds of great things from many great countries and make the greatest ever. But the fact remains, the United States is the best by a long shot.
Hey Jon:
George W.Bush has his prayers answered. The answer was a resounding NO!
This is why I retired... Whats the point of working in this country. I don't see any benefit what so ever.
Canada population 33,700,000
U.S. poulation 300,000,000
Canadian banks 77
U.S. banks 8,430
Might want to try comparing apples to apples next time.
The Constitutional protection for the mining industry and the state laws that allow huge deductions need to undergo changes. I am not advocating the Alaska solution of a 25% royalty on oil companies, although based on recent earnings reports, that doesn't seem to have had a negative effect on their profits.Two mining companies are planning on opening mines in the Comstock Lode and the Carlin Trace.
The issue was highlighted in a recent power point presentation at the Barrick Mining annual meeting. One of the mines highlighted in the power point was the Cortez Hills Mine in Northern Nevada. According to the power point, in 2010, the mine produced 1,140,000 ounces of gold (over 35 TONS) at a production cost of $312 per ounce. During the first quarter of 2011, the mine produced 366,000 ounces (over 11 TONS) of gold at a production cost of $220 per ounce. If you project a sale price of $1000 over cost of production,that results in a profit of over $1,500,000,000. Based on what the mining industry paid in taxes in 2009, the tax payment to the state of Nevada will probably be less than 50,000,000. The power point goes on to point out that the projected production from Cortez Hills for 2011 will be between 1.30 to 1.45 MILLION ounces (40-45 TONS)at a production cost of $235-245 per ounce. This is natural resource that should provide significant benefits to the citizens of Nevada. Unless the Legislature acts quickly, another two years will pass without any significant action to change the tax structure of the state.
In 2009, the mining industry paid 48,600,000 on gross revenue of 5,800,000,000. In 2010, the gaming industry paid 416,000,000 on gross revenue of 5,800,000,000. Mining pays about 10% of what gaming pays in taxes.
@Noindex.
Canadian Banks: 2 failures out of 77 2.6% failure rate.
US Banks: 322 failures out of 8430 3.8% failure rate.
Sandoval is useless. He did not make it one year without breaking promises. What a liar. I wonder how long before a story about him cheating on his wife emerges. He is a fraud.