Wednesday, May 7, 2008 | 2:06 a.m.
The Bush recession has led to a projected $900 million shortfall in Nevada’s tax revenue and has forced legislators and Gov. Jim Gibbons to make extensive cuts in state programs.
Now Gibbons is proposing another approach as a way of keeping his ill-advised election promise to not raise taxes.
He says that penalties and interest that have been accumulating against businesses delinquent on their state taxes and fees should be waived during an amnesty program that would begin July 1.
We disagree.
Gibbons reasons that this program would encourage at least some businesses to step forward and pay their past-due taxes.
But what message would be sent to the vast majority of business owners who have been diligent about paying what they owe, even if it meant hardship? That they’ve been fools for being conscientious?
Tax amnesty programs generally do not recover significant amounts of revenue, as proved by past experiences with them in Nevada. Our view is that delinquent taxpayers, be they business owners or individuals, should be dealt with on a case-by-case basis, rather than be offered a blanket amnesty program that is unfair to taxpayers who paid on time.
People should not be led to believe that they can put off paying their taxes because a future amnesty program will save them from penalties and interest.
The Nevada Tax Commission should not go along with this proposal by Gibbons.
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