The Ongoing Lessons Of Growing Government
By: Doug Busselman, Executive Vice President
For those who might be paying attention to the various current unfolding events relating to the 2010 Nevada budget gap we will hopefully recognize the details at the core of the hype and not miss the principles worth paying attention to…
Lesson Number 1: First, it is much easier for politicians to increase government spending levels than it is to reduce them. When there has been extra money coming in our elected leaders have spent more. When there wasn’t more money coming in – they raised taxes (at record establishing paces) – and then spent more. Now, after approving a Billion tax increase 8 months ago and having less revenue coming in than what is needed to meet the spending targets that they approved – cutting spending is not looked on as the best solution.
Lesson Number 2: Second, we need to note that when government increases tax extractions from the private sector – it is a tax increase. Governor Gibbons is attempting to spin the tax increases he is proposing to acquire from mining as not being a tax increase. Okay, if that is what he wants to believe…there is no sense trying to convince him otherwise. He still is not convinced that going into the 2009 Nevada Legislature, when he put the receipts from the room tax increase into his budget proposal, he wasn’t making a commitment to the tax increase there. That tax hike cover was justified because three counties in the state had advisory ballot questions, asking if increasing the tax increase on room taxes met their approval for placing the tax funds received into education. It doesn’t take a groundswell from everyone to justify tax hikes…just the reasons highlighted in Lesson Number 1.
Lesson Number 3: Thirdly, taxpayers getting their money’s worth for the more money that their elected officials spending is not justified, unless by accepting some accountability (with details still to be determined) you might be eligible to get more federal dollars. It remains to be seen whether education in Nevada will improve should we become eligible through changes in the state law where teachers will be evaluated with consideration on students’ performance – but since it will bring in more money (see Lesson Number 1 again)…we’re going to chase it.
Lesson Number 4: Fourthly, it is not a good idea for your business to be profitable, perceived to be profitable, providing employment or operating under a corporate business structure. If any of those apply to your situation – you are considered to be required to hand it over to the state of Nevada (see Lessons Number 1 and Number 2). As we have seen aptly demonstrated by performance by our elected leaders – the private sector exist to provide for the well-being of bureaucrats and those who depend on government’s largess (which as we know from Lesson Number 1 needs to continue to grow and expand).
Lesson Number 5: Fifth, if you have been required to pay in a user fee to receive a government service (possibly one that regulates and controls you) and through the receipts of those funds the balance of the accounts state government puts those user fees into has developed a surplus – you just made a contribution to resolving the state budget gap (at least if the proposal to sweep about $90 Million gets approval). This should make it quite obvious that everything possible should be done to keep user-funded programs operating on as much of a hand-to-mouth basis as possible…otherwise Lesson Number 1 kicks in and getting more is what our current government’s purpose is all about.
For those who might be paying attention to the various current unfolding events relating to the 2010 Nevada budget gap we will hopefully recognize the details at the core of the hype and not miss the principles worth paying attention to…
Lesson Number 1: First, it is much easier for politicians to increase government spending levels than it is to reduce them. When there has been extra money coming in our elected leaders have spent more. When there wasn’t more money coming in – they raised taxes (at record establishing paces) – and then spent more. Now, after approving a Billion tax increase 8 months ago and having less revenue coming in than what is needed to meet the spending targets that they approved – cutting spending is not looked on as the best solution.
Lesson Number 2: Second, we need to note that when government increases tax extractions from the private sector – it is a tax increase. Governor Gibbons is attempting to spin the tax increases he is proposing to acquire from mining as not being a tax increase. Okay, if that is what he wants to believe…there is no sense trying to convince him otherwise. He still is not convinced that going into the 2009 Nevada Legislature, when he put the receipts from the room tax increase into his budget proposal, he wasn’t making a commitment to the tax increase there. That tax hike cover was justified because three counties in the state had advisory ballot questions, asking if increasing the tax increase on room taxes met their approval for placing the tax funds received into education. It doesn’t take a groundswell from everyone to justify tax hikes…just the reasons highlighted in Lesson Number 1.
Lesson Number 3: Thirdly, taxpayers getting their money’s worth for the more money that their elected officials spending is not justified, unless by accepting some accountability (with details still to be determined) you might be eligible to get more federal dollars. It remains to be seen whether education in Nevada will improve should we become eligible through changes in the state law where teachers will be evaluated with consideration on students’ performance – but since it will bring in more money (see Lesson Number 1 again)…we’re going to chase it.
Lesson Number 4: Fourthly, it is not a good idea for your business to be profitable, perceived to be profitable, providing employment or operating under a corporate business structure. If any of those apply to your situation – you are considered to be required to hand it over to the state of Nevada (see Lessons Number 1 and Number 2). As we have seen aptly demonstrated by performance by our elected leaders – the private sector exist to provide for the well-being of bureaucrats and those who depend on government’s largess (which as we know from Lesson Number 1 needs to continue to grow and expand).
Lesson Number 5: Fifth, if you have been required to pay in a user fee to receive a government service (possibly one that regulates and controls you) and through the receipts of those funds the balance of the accounts state government puts those user fees into has developed a surplus – you just made a contribution to resolving the state budget gap (at least if the proposal to sweep about $90 Million gets approval). This should make it quite obvious that everything possible should be done to keep user-funded programs operating on as much of a hand-to-mouth basis as possible…otherwise Lesson Number 1 kicks in and getting more is what our current government’s purpose is all about.
Posted by Doug Busselman at 2/18/2010 8:55 AM 
Categories: Nevada State Spending
Tags: Governor Jim Gibbons Nevada Legislative Special Session Nevada Budget State Spending Taxes
Categories: Nevada State Spending
Tags: Governor Jim Gibbons Nevada Legislative Special Session Nevada Budget State Spending Taxes
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