Activist Group Proposes New Taxes
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Posted: 4:29 AM Jan 13, 2009
Activist Group Proposes New Taxes
Tax proposals that could raise nearly $900 million a year without having to go through a drawn-out revision of the Nevada Constitution were outlined Monday by an activist group long at odds with Gov. Jim Gibbons' anti-tax stance.
Reporter: By BRENDAN RILEY, AP
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CARSON CITY, Nev. (AP) - Tax proposals that could raise nearly $900 million a year without having to go through a drawn-out revision of the Nevada Constitution were outlined Monday by an activist group long at odds with Gov. Jim Gibbons' anti-tax stance.

Constitutional changes to allow income taxes would take several years to enact, but those proposals would raise far revenue more and create a "truly progressive and stable" tax structure, representatives of the Progressive Leadership Alliance of Nevada said.

"When people truly understand our tax structure, and I would say the majority of people don't, then they realize that we are being shortchanged and played for chumps," PLAN representative Jan Gilbert said.

Gilbert, Bob Fulkerson and other PLAN members said the existing tax structure is far too easy on big business and wealthy individuals, and hurts the state's poorest residents.

Fulkerson said adequate revenue is needed to maintain "the basic building blocks of civilization," but the state's Republican governor instead "wants to squeeze the life blood out of our state" by pressing for major budget cuts.

Gilbert said she's hopeful that legislative leaders will have enough "political will" during the upcoming 2009 session to approve new revenue sources - including some of those endorsed by PLAN - and help erase some of Nevada's $2 billion-plus shortfall.

Proposals that the 2009 Legislature could swiftly enact include eliminating most tax exemptions now granted Nevada's big mining industry, imposing business profit taxes that go up as profits rise, and doubling the state's existing business tax, PLAN said. Those steps would raise more than $600 million a year.

Increasing hotel room taxes and collect taxes on free or "comped" food provided by hotel-casinos would generate another $265 million a year, according to PLAN.

Constitutional changes would be needed to tax the capital gains, interest and dividends of Nevadans earning more than $200,000 a year or to approve an across-the-board state income tax. PLAN is pushing both those changes.

The budget that Gibbons is expected to outline this week will be more than $2 billion below the estimated $8.1 billion needed to maintain current government services. His budget drafters have asked some agencies for "what-if" plans for cuts that could exceed the 34 percent they've already considered.

The state Economic Forum has projected the state's revenues for the coming two fiscal years at about $5.8 billion. That's the figure Gibbons must use for his budget unless he recommends some additional revenue sources.

State Budget Director Andrew Clinger has said $8.1 billion is what the state needs in revenue to cover the cost of maintaining services at current levels while accounting for inflation, population growth and other factors that drive up government spending.

(Copyright 2009 by The Associated Press. All Rights Reserved.)


Latest Comments

Posted by: california Location: reno on Jan 13, 2009 at 10:41 AM

Gibbons can take a pay-cut, of 3/4 of his weekly paycheck! And everyone in carson city, also take a pay-cut of 3/4 of their weekly paycheck! What make gibbions so special? If gibbons was a man, & governer. People who work for the state wouldn't be having a pay-cut. If gibbons was a man, the governer would be taking a pay-cut! Guess for what I've seen the news about gibbions. NOT a man or governer! It starts from the top and go down street walker. Good Luck Dawn, you'll be off without that trash of a husband. You can find a better person, but least you'll get ride of the trash your married to now.
Posted by: Joanne N. Booth on Jan 13, 2009 at 09:40 AM

We don't want state income taxes in Nevada. The reason we moved here was to avoid those types of taxes which California has and look at them..bankrupt state.
Posted by: Nevadan Location: Reno on Jan 13, 2009 at 09:32 AM

If these ignorant "activists" help impose these new taxes, they will cause a HUGE mass exodus of businesses leaving Nevada, causing even deeper distress to the states economy! Think before you act, activists!
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