If Our Elected Representatives Won’t Cut Spending When Times Are Bad…
By: Doug Busselman, Executive Vice President
The majority party, in control of the Nevada Assembly and the Nevada Senate, want to make this session the highest tax increasing get-together ever held in Carson City. If they are successful in passing S.B. 429, the $781 million omnibus tax plan that has emerged from the closed-door deal, the 2009 Legislative Session will have increased taxes in a way that has never occurred in Nevada’s history.
Against a backdrop of soaring unemployment the plan is to increase the tax burden on those employees who still are getting a paycheck. Likewise, businesses which haven’t gone out of business (yet) will have the opportunity to pay twice as much for their state business license.
There are several reasons for Nevada lawmakers taking the actions that they are pursuing. The first tax hike was caused by teachers arranging a ballot initiative deal with Southern Nevada hotel moguls to create an advisory ballot question to increase the hotel room taxes by four percent in Clark and Washoe Counties and then skim that for educational funding, which includes in no small measure getting more into teacher paychecks.
The tax increase being considered under S.B. 429 is to cover the costs for the spending increases that have been agreed to (reported earlier here). The increased need for taxes is also partially because the revenue being collected from existing taxes is not matching up with the volume of income that has been coming in.
Individuals and businesses in the private sector have been forced to make changes in their spending to fit with the challenges of the downturn in the economy. Their options didn’t include taking revenue from others (as the Nevada Legislature is working to do in taking property taxes from Washoe and Clark Counties) or passing a tax package. The private sector has reduced their levels of spending to meet the ability to pay for those expenditures.
Nevada lawmakers decided that the spending amounts from the general fund shouldn’t be less for the coming two-year budget cycle – it should be more.
With this sense of the fiscal frame-of-mind, you have to wonder what the situation would be if times weren’t so financially trying. If the evidence of demonstrated practice is any indication, we can see where the last largest tax increase ever (passed just a few short years ago in 2003) has been used to finance an ever-increasing state budget, growing state spending by more than 60 percent over that time-frame.
Spending Reform A Must
While part of the off-set for higher taxes is supposed to be more fiscally responsible retirement and health care arrangements for government employees – the real necessity lies in finding a way to limit escalating state spending.
Legislators can’t come to each succeeding session thinking that the only possible option is to boost state spending because the “need” is so great. How about (and where do) the “needs” of those who earn the money that state government takes?
Ideally, voters will elect responsible representatives who are capable of practicing sound spending. However, it might require something else to achieve this result, including the possible approach of a system of spending limitations.
The majority party, in control of the Nevada Assembly and the Nevada Senate, want to make this session the highest tax increasing get-together ever held in Carson City. If they are successful in passing S.B. 429, the $781 million omnibus tax plan that has emerged from the closed-door deal, the 2009 Legislative Session will have increased taxes in a way that has never occurred in Nevada’s history.
Against a backdrop of soaring unemployment the plan is to increase the tax burden on those employees who still are getting a paycheck. Likewise, businesses which haven’t gone out of business (yet) will have the opportunity to pay twice as much for their state business license.
There are several reasons for Nevada lawmakers taking the actions that they are pursuing. The first tax hike was caused by teachers arranging a ballot initiative deal with Southern Nevada hotel moguls to create an advisory ballot question to increase the hotel room taxes by four percent in Clark and Washoe Counties and then skim that for educational funding, which includes in no small measure getting more into teacher paychecks.
The tax increase being considered under S.B. 429 is to cover the costs for the spending increases that have been agreed to (reported earlier here). The increased need for taxes is also partially because the revenue being collected from existing taxes is not matching up with the volume of income that has been coming in.
Individuals and businesses in the private sector have been forced to make changes in their spending to fit with the challenges of the downturn in the economy. Their options didn’t include taking revenue from others (as the Nevada Legislature is working to do in taking property taxes from Washoe and Clark Counties) or passing a tax package. The private sector has reduced their levels of spending to meet the ability to pay for those expenditures.
Nevada lawmakers decided that the spending amounts from the general fund shouldn’t be less for the coming two-year budget cycle – it should be more.
With this sense of the fiscal frame-of-mind, you have to wonder what the situation would be if times weren’t so financially trying. If the evidence of demonstrated practice is any indication, we can see where the last largest tax increase ever (passed just a few short years ago in 2003) has been used to finance an ever-increasing state budget, growing state spending by more than 60 percent over that time-frame.
Spending Reform A Must
While part of the off-set for higher taxes is supposed to be more fiscally responsible retirement and health care arrangements for government employees – the real necessity lies in finding a way to limit escalating state spending.
Legislators can’t come to each succeeding session thinking that the only possible option is to boost state spending because the “need” is so great. How about (and where do) the “needs” of those who earn the money that state government takes?
Ideally, voters will elect responsible representatives who are capable of practicing sound spending. However, it might require something else to achieve this result, including the possible approach of a system of spending limitations.
Posted by Doug Busselman at 5/21/2009 3:30 AM 
Categories: Nevada Legislature
Tags: Spending Nevadva Taxes
Categories: Nevada Legislature
Tags: Spending Nevadva Taxes
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