By:  Doug Busselman, Executive Vice President

We’ve all heard the analogy about “robbing Peter to pay Paul”.  It seems that is pretty much become government policy as the folks in Washington, D.C. do their work and Nevada legislators seek to find solutions to their desire to spend more money than they likely have available through current methods of taxation.

I sat through the first half of the joint Nevada Assembly and Senate Tax Committee hearing on March 4th and watched the show presented by those who are members of the Progressive Leadership Alliance of Nevada (PLAN).  I listened carefully to the presentation by the Chief Economist for the National Education Association (NEA), even going so far as to obtain a copy of the Power Point slides he attempted to project, but walked through with hardcopy printouts instead.  I found the comments made by organized labor to be interesting observations as it relates to the topic of tax policy for Nevada.

At various points during this legislative session, Senator Bob Coffin, chairman of the Senate Taxation Committee has stated that he’s looking for good ideas on how the state can effectively achieve the objective of increasing the flow of tax dollars into Nevada coffers.

Part of the purpose for the March 5th joint hearing was along these same lines, inviting various business sectors to the table to share their ideas on how to expand and increase Nevada taxes.

The long and the short of it – the folks in charge of the Nevada Legislature are looking for “Peter” and as many of them as they can possibly find.

Our version of “Paul” especially the state’s educational community (K-12 and Higher Education) have very big “needs” and “paying them” is going to take some significant shake-down of “Peter”.  Driving back and forth from Reno to Carson City I’ve noticed two billboard encouragements from the Nevada teachers’ union not to cut education.

Somehow I don’t think that will ever happen, but I also think that the educational community’s perspective includes not having any reductions to what they consider their legitimate “right” of increases.  Just staying even is not an option that these folks would find acceptable, regardless of what kind of economic shape “Peter” might be in.

While I was successful many years ago in passing the limited number of economics classes that I was required to take, I don’t consider myself to be a final authority or someone with a brilliant insight on economic theories or principles.

However, as I watch the way things are going I’m becoming more convinced that “Paul” has a lot better prospects in this unfolding situation than “Peter”. 

Perhaps after our government has taxed “Peter” out of existence “Paul” and our elected representatives might need to figure out a new plan.  Until then, “Calling all Peters” the Nevada Legislature is looking for you…

We'd also like to suggest that it would be a very good time to contact Nevada Legislators and supporting the idea of budget reductions and Nevada living within its means.