By:  Doug Busselman, Executive Vice President

This might be obvious to some, but I’m not too sure that some involved in deciding Nevada tax policy.

First, we read here that the unemployment rates are soaring.  This situation is related to business enterprises, who the unemployed used to work for, not being able to afford to keep the unemployed employees on their payrolls.

Who are the entities that are supposed to step up and pay more taxes?  From what I’ve been hearing in the legislative meetings I’ve been going to – “we’ve got to have a broad-based business tax”.

Should we plan to include the businesses who can’t afford to keep their employees, employed – or should we only tax those who still have enough revenue or possibly profits to afford to still have employees working?  If we add the tax expenses, they aren’t paying now, to the cost of their doing business – will they still have the ability to afford the employees, currently on their payrolls.

If taxes are applied to business that can’t bear the extra expense and more join the ranks of the unemployed will the legislators have accomplished a worthwhile outcome? 

Is increasing state government spending worth the risk and likely result of more unemployed?  Having the ability to increase state government spending is the primary reason for needing to raise taxes, as explained again by the information provided by the Nevada Policy Research Institute.

So far, the proposed budget by Governor Gibbons has been a useful club for taking pot-shots at the Governor, but there hasn’t been a lot of public recognition that the changes being promoted (more spending required) will also require legislators to increase taxes.

It is understandable that lawmakers don’t want to cut back or provide funding to very important programs and services that they and most people believe necessary.  Your contacts, with those elected to represent you, should stress that they need to confront this difficult reality and build a budget for the coming biennium on the revenue that is available.

Ask your elected representative how they connect the dots of what is going on and what they believe should be done.  Comparing your perspective with their insights might be helpful for everyone.