Las Vegas Sun

March 28, 2024

Damon Political Report

Lawmakers ask: Where is the opposition to the tax increase?

As she prepared to gavel to a close the third public hearing on Democrats’ proposal to create a services tax Saturday, Assemblywoman Marilyn Kirkpatrick, D-North Las Vegas, had one question: Where are all the people?

Indeed, the series of public hearings lawmakers have held this week on their proposal to raise $1.2 billion in taxes have been sparsely attended, with mostly business lobbyists, union members and liberal activists testifying. (The hearing Saturday morning was slow enough that one lawmaker fell dead asleep in his chair, attracting stares and giggles until a fellow lawmaker woke him up.)

“One, either people aren’t alarmed that we’re having this discussion and so chose not to show up,” Kirkpatrick said. “Or, two, maybe they’re late risers on a Saturday.”

But a third reason could be at play: conservatives or others worried about a tax increase don’t believe it will actually happen.

With Gov. Brian Sandoval promising a veto and Republican lawmakers appearing mostly unwilling to entertain a tax increase, tax opponents don’t have much of an incentive to protest Democratic proposals.

“Folks on our side know it ain’t going to happen,” said conservative operative Chuck Muth. “There’s a lot of apathy because we have better things to do than waste time on something that’s not going anywhere.”

Assemblyman Pete Livermore, R-Carson City, who sits on the Taxation Committee, said he was surprised the public wasn’t more engaged on the issue.

“We’ve had limited discussion from the business community, but it’s the consumers who will be paying this tax too. Either they don’t want to involve themselves or there’s not an understanding of what the tax is.”

Democrats presented their proposal to impose a 1 percent services tax, applied to such things as car repairs and haircuts, and a 0.8 percent margin tax on business revenue on May 5.

But the actual bills weren’t released until Wednesday, when the hearings were scheduled. The hearings began Thursday, prompting some to complain that not enough notice was given to build a crowd.

The public has packed hearing rooms—often with the help of Democratic organizers—to protest the cuts to education, social services and state worker salaries.

Many of those same people have testified in support of the tax increases proposed by Democrats.

But even if those who oppose the tax increase are sitting on the sidelines because they believe it has no chance of passing, some Republican lawmakers continue to voice willingness to back a tax increase in exchange for spending reforms.

“Right now we have a balanced budget,” said Livermore, who signed the no new taxes pledge. “But if the right reforms happen, I do think we could do some add backs.”

That keeps alive the possibility of a tax increase, or at the very least the extension of the 2009 tax increases that are set to expire in June.

So what if conservatives are wrong in their complacency?

“Then there will be hell to pay in the primary,” Muth said.

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