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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Nevada Gubernatorial candidate Rory Reid put forth his education plan, Economic Development through Greater Education (EDGE), on March 22, 2010. He held a town hall meeting that night at 6:30 pm at Bracken Elementary School. He presented his plan to a group of students, educators and citizens and told the crowd that the plan would work for Nevada.

There, an economist would appear and explain that the plan can be paid for and all measures proposed would work. A picture perfect moment was when Dan Klaich, the Chancellor of the Nevada Board of Regents and Co-Chair for the Nevada Reform Task Force, shook hands with the candidate, smiling as if to tell him “good job.”

Let us not forget the fact that we are far from improving our economy, and thus, far from improving our school system.

Although Rory did draft EDGE, with the help of his campaign staff, there are many things that are borrowed from other candidates and our own Governor. He charges that his opponents, Judge Brian Sandoval and Governor Jim Gibbons, only want to cut education. However, Rory Reid made a mistake in the defense his own plan. He failed to define how he will pay for his education plan. Yikes!

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NEVADA IS UNAMERICAN

A battle being waged for 5 days in Carson City is coming to a collision point. Like islands threatened by today’s tsunamis in the Pacific Ocean, caused by built up pressure being released, so to is Nevada faced with potential destruction from years of constraint on revenue reform.

Nevada legislators have long been the dog being wagged by the tail that is big business in this state. With few but powerful interests in this state (mining and gaming), the legislature has rarely gone directly against their will. This is why Nevada has the lowest gaming and mining taxes anywhere on this globe.

If that wasn’t enough, Nevada has practically no other taxes beyond very modest sales and property tax. It’s no wonder that Nevada is at the bottom of the heap in spending on essential governmental programs that American’s enjoy everywhere. So where do we stand?

Higher Ed: 48th
K-12: 52 (Puerto Rico spends more per pupil than Nevada)
Fewest government employees per cap.
Least taxes per capita

Is there a correlation with the above stats and the stats that follow?

3rd highest violent crime rate
highest high school drop out rate
2nd highest suicide rate

Is it any surprise that CNBC ranked Nevada 45th in business climate? Quality of living factors into a business friendly environment.

Why does Nevada continue to be dead last in everything? I have been a registered Republican for 10 years. I’ve been to many other states around this country. The kind of conservatism in this state is drastically different from the rest of America to the point where it is drastically Un-American.

Big business claims that we shouldn’t tax them during a recession. When the economy was good, they cried not to raise taxes for fear it would hurt the economy. During recovery, surely they will say taxes would hurt the recovery. Turns out that business thrives in the two most taxed states in the nation, New York and California.

No one is suggesting we try for that. Climbing out from the bottom is all we ask. Let’s try a legitimate effort to fund our basic (and I mean utterly basic) programs in this state, like education, and public health and safety. The fact that all we can do is talk cuts is so absurd. We are backwards to the point of lunacy.

The session is not looking like it will close today, but no one really knows what is being discussed behind closed doors down there. For real time coverage and chatting of the special session, go here.

Nevada law requires people to show proficiency in gun use before the state will issue a permit to carry a concealed weapon.  Ironically, you can carry one openly at your side with no such test.  Utah citizens are angry because now Nevada is not recognizing Utah’s “CCW” because they do not require a proficiency test.

Photo © by Jeff Dean

Many argue that getting a license to carry a weapon should be like getting a license to drive.  Okay, that makes sense.  But why is it that I can carry a gun in a holster on my side with no test, but if I want to hide it, I must get a license, and pass a proficiency test?

Then the question becomes, why are we going to require Utah to have the same asinine law requiring a proficiency test for a ccw, when we don’t require such a test for open carrying.

Such quandaries are typical in government.  Things are not usually done for practical reasons with government, they are done for political reasons.  Let me give you a fine example.

The federal government does not need the Securities and Exchange Commission and the Commodity Futures Trading Commission at the same time.  They should be combined.  This is cited as one of the problems that could be fixed to prevent situations like we are in now.  Why won’t congressman of both parties do anything about this?  Well, it’s political.