Let’s Talk Taxes

By:  Doug Busselman, Executive Vice President

It’s not a discussion that is supposed to happen in Nevada.  Democrats don’t talk about taxes – they just get together in their caucus room, decide who has been vilified enough to be forced to anti-up and then come out and press the green “Yes” votes in unison.   Republicans don’t talk about taxes because when they do – they get hammered for having an opinion which doesn’t fit with the mantra they are supposed to be espousing.

I fully understand the reason for holding the line with regard to the “No New Taxes” theme.  It is part of the organizational policy book that I work to implement daily…

Nevada Farm Bureau is opposed to the adoption of a tax on business profits as well as the creation and implementation of a gross business tax, assessing a tax against business incomes.  What’s more our policy states that “We oppose any new taxes, fees or any other schemes that generate additional revenue for government without Farm Bureau involvement and approval.”  Let there be no mistake – we are not in favor of increases to taxes or the creation of new ones that we don’t already have!

Herein lies a problem – Where do Nevada taxpayers go to have an honest and open discussion about taxes?  

It makes perfect and legitimate sense to take the “No Taxes” point of view, because we also don’t get to have a legitimate public policy discussion about whether we are getting our money’s worth for the spending that takes place.  To a certain degree “starving the buggers out” is the only way that we’ve gotten to the point where Nevada government even got to simply decreasing the level of increases…

We’re told that spending reform is in the works (at least from a backroom point of view) with the budget folks putting together a duplicate proposal.  One version will come in the form that has been done and is recognized as the way Nevada government lays out budget proposals.  The other version will present a priority system which highlights the things that state government is required to do by law and court orders, tapering down to lesser priorities which are being paid for, but would be worth not doing and paying for with money we don’t have.

Getting our budget system reformed and also getting our big-ticket expenses (Education) reformed to make sure that we get the value we should for the investments made are must do matters that have to be accomplished prior to moving forward with taxes – but having those tax conversations out in public and in a forum where the chips will fall where they may – would also be worthwhile improvements.  The behind-closed-door systems of the past few legislative sessions where things really get decided before they are “decided” and holding tax bill hearings on legislative proposals which aren’t even officially available for hearing (like the Nevada Assembly did in 2009) can’t be justified or found to be acceptable ways of doing business.

Our tax structure does need evaluation and consideration for changes and that should be addressed through a public forum with full disclosure for who is proposing what as well as careful analysis of the ramifications for the variety of proposals offered .  Somehow there ought to be a taxing system which a broad-based group of citizens (like everybody) pays and make those payments in full awareness that they are paying the taxes being paid.  Our current system of hiding the tax burden and pretending that fairness is to be found with someone other than voters doing the paying – is not sound policy or a valid approach to be taken.  Perhaps when we each understand how much government is costing us, we’ll be able to better evaluate how much we actually want to spend to get the government we’re getting…
 

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Comments

  • 8/26/2010 11:03 AM Lamar Aiazzi wrote:
    You know, Doug, you still haven't answered my question as to where you were while all of the uncontrolled growth in Nevada was going on. The idea that mysterious "market forces" will somehow cause everything to balance out, and businesses don't need to be regulated and taxed have been thoroughly discredited by the corporate track record over the last 10 years: Enron, Qwest, MCI, Lehman Brothers, AIG, Goldman Sachs, Bear Stearns.

    Corporations are great for inviting their customers to feed at the public trough. This is what happened here in Nevada. Developers came in and constructed high density housing developments and massive business parks in an uncontrolled fashion resulting in urban sprawl and skyrocketing population, rendering a barely adequate infrastructure of highways, schools, jails, medical facilities, and sanitation facilities obsolete. The average voter already pays income tax. Why shouldn't businesses pay a small, but significant portion of their profits in taxes to help address the demands on the state's infrastructure as Nevada struggles to diversify and shift its economy away from total dependence on gaming and tourism?

    Taxes are necessary. If they're kept reasonably small in proportion to profit, they can't be categorized as evil. So, when will you quit the diatribe, and start looking at the realities of the state's situation?
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  • 8/26/2010 11:53 AM Phil Anderson wrote:
    "Where do Nevada taxpayers go to have an honest and open discussion about taxes?" is a fair question Doug, I would like to modify it a little "Where do Nevada taxpayers go to have an honest and open discussion about revenue".
    As a businessman, the last thing I want to do is increase my price point, I want to look at fixed and variable cost, increasing market share, increasing market, diversification, right-sizing, down-sizing and everything else before increasing my price point. Taxes are Nevada’s price point.
    For true reform on how Nevada legislators look at increasing revenue...it takes reform in the legislature. Nevada still has citizen legislators and it is time to remind them of that. It is time for organizations like the Farm Bureau to join with other organizations to demand a seat at the table...not request...demand.
    For better or for worse, the Tea Party Movement has shown one thing...an organized outside voice is a powerful tool for movement. The Farm Bureau is one of many "tools" in Nevada that can be organized and demand a seat at the table. I APPLAUD YOUR STANCE ON TAXES.
    These "tools", this force, can bring common sense, street sense and business sense to a group that desperately needs it. Our political leaders.
    There are so many opportunities for Nevada and I am afraid our political leaders are taking us down a path where only a “select few” are allowed to bring ideas forward. We are a creative, innovative forward thinking group of people here in Nevada. The ideas for development (cultural, business, academic) I have come across in the past couple years…boggle the mind.
    For us to succeed… the only thing we need to do is…remove the barriers to success.
    As I told one candidate who asked me what my idea is of the perfect politician…I said…one that realizes the job of a politician is to clear the path…step aside…and let the people, business and markets take over. I believe when you do that…revenue to the state will come…and tax revenues will increase all on there own.
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