More Government Than We Can Afford
By: Doug Busselman, Executive Vice President
There are those who would like us to believe that the $900 Million hole in the state budget is a signal that we don’t have a broad enough tax base. They maintain that Nevada government should be in a position to spend at the required levels (which they determine to always need to be increasing) no matter what the condition of the economy. Unfortunately for Nevada taxpayers, those holding these strong convictions are the leaders of the majority party in charge of the legislative process.
Without a lot of sophisticated economic theory to back up the concept that I would like to advance here I’m going to try to make the case that having a $900 Million hole in the state budget is actually a signal that we’ve got about $900 Million more government than we can afford. It should be remembered that during the 2009 Nevada Legislative Session a two-thirds majority of lawmakers voted to increase state taxes by more than a Billion dollars. Those lawmakers took that action twice, since passage required an over-ride of Governor Gibbons’ veto. (Passage of the Billion tax increase was not an accidental slip-up – it was a planned and executed tax hike.)
The results of the tax hike and the “production” of the other taxes are not meeting the expectations for revenue generation. Although those who believe taxes can never be high enough – the inability to generate more revenue might be considered as a reality harkening to the attempts to get blood from a turnip analogy… Increasing the tax load to force even more underwater might not be a reasonable solution – no matter how much you want to believe that government deserves more money.
While there are those actively seeking to stick it to the mining industry by way of the tax overhaul that they would like to implement, dragging more sacrifices to be bleed at the sacred alter of bigger government is not an award winning formula for growing a sustainable economy. Even if a segment of the economy (whether individuals, companies, or grouping of industries) might be profitable, that does not entitle Nevada government the right of plunder in order to acquire greater revenue.
As difficult as this might seem to understand, the private sector does not exist to provide for government… Government should not exist to take from those who are deemed to be capable of providing in order for those who receive government funds to get more… (There is a form of government which operates on the mantra “From each according to his ability, to each according to his need” – but, we’re not quite there yet in completely adhering to Karl Marx’s philosophy.)
It would appear quite evident that a government which can’t meet the expenses that have been authorized – with the tax revenues which have been raised…but which are not currently yielding the level of income that provides for the expenses – should reduce the expenses to match the level of tax revenue being received.
There are those who would like us to believe that the $900 Million hole in the state budget is a signal that we don’t have a broad enough tax base. They maintain that Nevada government should be in a position to spend at the required levels (which they determine to always need to be increasing) no matter what the condition of the economy. Unfortunately for Nevada taxpayers, those holding these strong convictions are the leaders of the majority party in charge of the legislative process.
Without a lot of sophisticated economic theory to back up the concept that I would like to advance here I’m going to try to make the case that having a $900 Million hole in the state budget is actually a signal that we’ve got about $900 Million more government than we can afford. It should be remembered that during the 2009 Nevada Legislative Session a two-thirds majority of lawmakers voted to increase state taxes by more than a Billion dollars. Those lawmakers took that action twice, since passage required an over-ride of Governor Gibbons’ veto. (Passage of the Billion tax increase was not an accidental slip-up – it was a planned and executed tax hike.)
The results of the tax hike and the “production” of the other taxes are not meeting the expectations for revenue generation. Although those who believe taxes can never be high enough – the inability to generate more revenue might be considered as a reality harkening to the attempts to get blood from a turnip analogy… Increasing the tax load to force even more underwater might not be a reasonable solution – no matter how much you want to believe that government deserves more money.
While there are those actively seeking to stick it to the mining industry by way of the tax overhaul that they would like to implement, dragging more sacrifices to be bleed at the sacred alter of bigger government is not an award winning formula for growing a sustainable economy. Even if a segment of the economy (whether individuals, companies, or grouping of industries) might be profitable, that does not entitle Nevada government the right of plunder in order to acquire greater revenue.
As difficult as this might seem to understand, the private sector does not exist to provide for government… Government should not exist to take from those who are deemed to be capable of providing in order for those who receive government funds to get more… (There is a form of government which operates on the mantra “From each according to his ability, to each according to his need” – but, we’re not quite there yet in completely adhering to Karl Marx’s philosophy.)
It would appear quite evident that a government which can’t meet the expenses that have been authorized – with the tax revenues which have been raised…but which are not currently yielding the level of income that provides for the expenses – should reduce the expenses to match the level of tax revenue being received.
Posted by Doug Busselman at 2/5/2010 9:58 AM 
Categories: Nevada Budget
Tags: Nevada Budget State Spending Taxes Nevada Legislature
Categories: Nevada Budget
Tags: Nevada Budget State Spending Taxes Nevada Legislature
Comments