By:  Doug Busselman, Executive Vice President

The legislative process continues to grind away in Carson City without anyone actually spelling out the details of what taxes will be used to finance the increased spending that lawmakers believe they need to have. 

Over the past week’s hearings, there is some indication that the road is getting very slippery when it comes to increasing spending levels and capturing enough tax revenue to accomplish this objective.  The national and state economy are tanking so badly that guessing how much tax income can be generated is at best a “we sure hope” projection that might not stand up long enough to get the legislation raising the taxes through the system.

Some are looking to the upcoming (Thursday, March 5th) joint tax committee meeting, involving the Senate and Assembly Taxation Committee members as possibly the first indication of what might be in the cross-hairs of the majority party’s intended prospects. 

A presentation from the Progressive Leadership Alliance of Nevada (PLAN) will probably set the stage as they walk through their thinking that only the downtrodden aren’t paying their fair share.  This group in their January-released proposal gave particular attention to how much they felt mining companies weren’t paying in taxes.

They also indicated that they of the opinion that business in general need to anti up with “a 5 percent net profits tax applied to businesses (including mining, gaming, retail and construction) with profits from $50,000 to $100,000 and a 7 percent net profits tax for those with profits of $100,000 or more would raise an estimated $194 million for Nevada’s general fund.”

In the spirit following our nation’s leaders (from the White House and leadership in the U.S. Senate and House) – the PLAN idea seeks to extract from the “wealthy” – “Ultimately, wealthy residents with unearned incomes over $200,000 should be charged a tax on capital gains, interest and dividends.” the PLAN report wrote, adding “And Nevada should establish a state income tax like 43 other states. Both of those measures will require amending the state constitution.”

It’s been explained that the PLAN proposal to tax the be-jeepers out of us is founded on the need for state government to have the financial resources to spend at levels the “progressive” folks believe to be necessary.

Perhaps a fundamental question that lawmakers should be asking isn’t how much can we get to spend – but how much can we afford to take from the private sector without making things even worse.

While legislative leaders plot and plan on how many green and union construction jobs they are going to be able to create through the largess of the Stimulus Package.  Ever increasing un-employment lines could grow even more if business taxes force more reductions in the number of employees as business enterprises struggle or fail.

We’re told you can’t get blood from a turnip.  Killing off Nevada business to generate more state spending might not be any more productive