Las Vegas Sun

March 29, 2024

WHERE I STAND:

Brian Greenspun wants legislators to seize the day

Special session provides chance to fix tax system

Greenspun column

LAS VEGAS SUN FILE

During the 2003 legislative session, then-Gov. Kenny Guinn and others tried unsuccessfully to diversify state revenue sources by reforming the tax structure, which relies heavily on the state’s tourism economy.

During times of great challenge there are greater opportunities.

Nevadans are being pressured, probably more than ever, by an economic downturn not solely of our making and a leadership void that is completely our fault. That pressure is being felt at all economic, social and human levels in our society, and it is questionable whether we will find our way through the mess without significant casualties.

It all depends upon the leadership quotient of our elected officials, for they are the folks to whom we have given the job of leading us through the mess we are in. Do those who claim to be leaders have the capacity to step up? Do those who want to be leaders have the ability and strength to put personal ambition aside and do what the people need them to do? Those are the questions. I am not sure whether to take the over or the under and that, unfortunately, is the first time in my short history in Nevada — six decades’ worth — that I have ever been uncertain.

The good news is that our governor, apparently tired of all the ugly press he and Nevada are getting across the country, has called for a special session of the Legislature on June 23 to address the financially devastating situation we have allowed ourselves to get into. The bad news is that the governor has called a special session of the Legislature because those folks have distinguished themselves of late as not having a backbone or a brain when it comes to doing what is right, what is needed and what is obvious.

OK, enough of the mini-rant. Where do we go from here?

I say we go back to 2003 and start over. That was the year when then-Gov. Kenny Guinn, the responsible GOP leadership in the state Senate and most of the Democrats tried to fix a heavily tourist-dependent tax structure by creating a method in which everyone who could afford it would get to invest in the future of this young and growing state.

For those of you who weren’t here, here’s the short version. A Northern Nevada congressman (now our governor), some in the right-wing, no-tax-under-even-the-most-dire-circumstances crowd and an ever-so-greedy chamber of commerce killed a once-in-a-lifetime chance for Nevada to secure a future of good roads, great schools, significant business growth and a better all-around quality of life.

The result of that legislative session is the impossible mess we are in today.

But we have another opportunity to get it right. The risk, however, of screwing it up again is not only great but brings with it a fiscal nightmare for the Silver State from which we may never escape. So we’ve got to do it right.

The legislators should gather in Carson City this month and, if they have to, defy the governor’s “no tax” mantra to the point where they just say no to stupidity. Of course, they must give our embattled chief executive the chance to lead us toward a more promising land, but, should he revert to his old self, there must be the kind of leadership that stands up and takes over.

So far, a group of gaming executives and some union representatives have cobbled together a loose coalition to try to find money for our schools. That is a good first step. However, there are other significant players in the gaming industry who think this is a mistake and a more global solution — one in which everyone who can afford to invest (be taxed) in Nevada’s future is asked and required to do so.

I know this flies in the face of polls saying people don’t want to be taxed or, if they do, they want to tax the other guy, but leadership is about education, persuasion and action — even when it is hard to do. But the simple and truthful answer is that businesses of any kind that can afford to invest must be asked to do so. That doesn’t mean people on fixed incomes, the poor and small businesses that barely eke out a living need to contribute, because it would not only be wrong to ask them but also counterproductive. But it does mean that businesses in this state that have made and continue to make millions of dollars and contribute not a penny of their success toward better schools, better roads and safer infrastructure must do so.

Once everyone who is able starts investing, you will be surprised by how much attention those folks will pay to how the money is being spent and what kind of results are produced. Everybody wins.

And with the 2003 plan that was scuttled in effect, the gaming industry would have stepped up in a most significant way. With 60 percent of gaming revenue coming from the nongaming side of the ledger, all that money would be subject to a gross revenue tax. Just like the money my family makes from real estate and other businesses that have not been asked to participate in the financial solution to Nevada’s grave economic problems.

Do I want to pay taxes? Of course not. Would I rather the other guy pay my way? Sure, why not? But, is it right and does it work to make Nevada a much better, safer, smarter and productive place to live if I help pay the bills? Of course.

The answer is simple. Getting there is hard, but it can get done if people who say they want to lead will do just that.

Kudos to our governor for calling the special session and kudos to the gamers and the teachers for taking a significant first step toward paying for a better life. The beauty of a June special session is that we will all see — before the next election in November — who does the heavy lifting. We will see who is capable of leading and who is content to just talk about it.

This is our opportunity. This is our challenge.

Brian Greenspun is editor of the Las Vegas Sun.