In February, 2011 our state legislature will meet to deal with the projected budget shortfall.  Our State Constitution requires the Legislature to fund education and balance our revenues and expenses.  To raise revenues, an option would be to increase taxes or create new taxes.  Some options include raising taxes on Nevada citizens or tourists coming to Nevada.  Fairness is the issue, but deep down Nevada and its citizens know that they need to expand our economic situation and tax it to survive.  People are coming up with new ideas but we do not need to focus directly on those issues.

Governor Jim Gibbons, former North Las Vegas Mayor Mike Montandon and former Nevada Attorney General Brian Sandoval have either signed a “no new tax” pledge or signaled that they would veto any tax proposals from the people/Legislature.  This is wrong.  There are new industries that will move to or be created in Nevada.  For a state executive to stop money from staying in our state is major red light for his/her constituents.  Any voter who votes for a candidate who will not create taxes for the mining, casino, energy, corporate or any industry is making a mistake.

Many people ask when the state of education is going to get better.  Well, how is education funded?  The educational system is funded through state funds and if the state is going to balance the budget and fund education first, there has to be the funds to do so.  We cannot stare down the barrel of a budget deficit every other year!  If we bring in different markets and tax current industries, we can have the money for a well funded educational system that would be in the top 10 in the nation.

“Let public schools then be established in every county of the United States, at least as many as are necessary for the present population, and let those schools be supported by a general tax.” –Robert Coram, American Author(1761-1796)

The League of Women Voters, at the 1984 National Convention, adopted criteria for evaluating federal tax policy and adopted a two year study of fiscal policy. After the study, a position on tax policy was developed and serves to guide League positions on fiscal positions.

The League of Women Voters believes that fiscal policy should be fair and equitable; provide adequate resources for government programs while allowing flexibility for financing future program changes; be understandable to the taxpayer; encourage compliance; and accomplish its objectives without creating undue administrative problems. Taxes should be progressive, not proportional.

This study concentrated on the federal tax system, nevertheless, the position holds as a litmus test for all fiscal policies. The League supports income as the major tax base for federal revenue; believes that the federal income tax should be broad-based with minimal tax preferences and a progressive rate structure; opposes a value-added tax or national sales tax in the federal tax system.

Today’s Sun Commentary brought to light that Nevada‘s structure for years has been studied and found lacking. “The Legislature continues to plug budget holes with quick fixes that do not address our longer-term problems. We need modifications in the existing tax structure that will provide a better revenue stream going forward”

Nevada has and continues to depend heavily on gaming taxes and related taxes on hotels, rental cars, and the sales tax.  The tax fixes from 2009 and special session 2010 will expire in 2011. Prior to that time Nevada needs a tax system that fits the economic climate of 2010 and future needs. Suggestions such as reconsidering existing exemptions to the sales tax to make sure they make sense, looking again at the modified business tax and perhaps a value-added tax are viable options.   Much has changed since 1984 including an explosion in internet sales which opens the question of a sales tax on internet sales.  Much has changed since 1865 with the mining industry.  Looking at respecting constitutional constraints but looking ahead to a mining extraction tax would be an option.

These are uncharted times calling for uncharted solutions and change to our Nevada tax system should mirror changes in “production and consumption patterns adjusting to changes in technology, completion, consumer preferences and demographics.”

Preparing now for restructuring the tax system in Nevada for the 2011 Legislature is not an option; it is the right thing to do.

The League of Women Voters welcomes all individuals to join. I was asked in a recent email if I was a man.    At this time there are no men who serve on the state board as officers. We do have a gentleman as one of our board of directors.

Respectfully, Sam King President of the League of Woman Voters of Nevada.

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