Desperately seeking a state income tax

The horse-and-buggy days vanished a century ago but Nevada still has a horse-and-buggy government. It needs to enter the 21^st century. And that means it needs a state income tax.

The mere hint of raising taxes is political heresy. It is the ultimate third rail of American politics. But the truth is that Nevada, with an ever-growing population, can ill afford to nickel-and-dime its way in the face of greater and greater needs.

Once again we hear from the governor and the legislators in Carson City that the state has no money for programs, or, that programs must be underfunded in order to balance the budget.

K-12 schools are badly in need of funds for new buildings and repair of old ones. Metropolitan school districts are crying for more funding. Higher ed was told to slash its budget, threatening jobs of part-time instructors and loss of many class offerings.

State roads are crumbling. Potholes abound. Road improvements are needed in Las Vegas to ease traffic tieups and frustrating commutes. A report just released notes that the state spends more for prisons than on education and health services.

A Nevada appeals court is essential with ever-increasing case loads for judges. Nevada needs annual sessions of the Legislature to replace outdated biennial sessions.

In the gubernatorial debates last fall, Jim Gibbons kept pointing to rival candidate Sen. Dina Titus while declaring: “She’ll raise your taxes. I won’t.”

It is doubtful that Titus would have dared to raise taxes. But she should have. She should have boldly declared something like this:

“Look, I don’t like tax increases any more than you do. But the state needs more revenue and it needs a more reliable income. Dependence on the state sales tax and ‘hidden taxes’ for everything is inadequate in the 21^st century. We can no longer continue doing what we did ‘yesterday.’ ’’

It might take decades for a gubernatorial candidate to be brave enough to state what has been obvious for a long time. But that day must inevitably come.

Case in point: Governor Gibbons says there is no money for a proposed full-day kindergarten. Senate Majority Leader Bill Raggio, instead of leading, follows. He agrees with the governor.

“Full-day kindergarten is a good-sounding project,” Raggio says. “Unfortunately, it can’t be funded this session or probably the next session (2009).” He further laments that such a plan would cost about $130 million, adding: “With all the other needs and the revenue shortfall, it’s not realistic.”

An income tax would cure the problem. Everyone knows that education is the key to progress and advancement of the state and individuals.

The annual report by Quality Count in American education is devastating. And embarrassing. It lists Nevada 44^th among the states for student proficiency in math, reading and graduation rates. It ranks Nevada 43th for student chances of going from kindergarten through college. So many rankings list Nevada near the bottom in nearly all areas.

People rail about big government. But big government is necessary if Nevada is ever to come close to meeting modern needs. The problem is nationwide: people want services--excellent schools and excellent roads--but they don’t want to pay for them.

Another measure in the Legislature should be passed: a bill amending the state constitution to allow a lottery.

Some Republican lawmakers, opposing a lottery, pretend that those who play lotteries are people who can least afford it.

We heard similar arguments four decades ago when most states would not allow gambling. Now most states have set aside moralistic qualms, permitting various forms of gambling because of the needed revenue.

The real reason Nevada does not permit lotteries is obvious. Casinos. They refuse to have any competition, even the humble purchase of lottery tickets. A lottery would generate something like $50 million annually for schools.

But casinos run this state. Ask political candidates who need money for their campaigns. Note too the statewide curb on smoking. Casinos are exempted.

As Steve Sebelius, editor of CityLife in Las Vegas, writes: “Nevada’s golden rule: the casinos have the gold and they make the rules…No matter how much big casinos pay in taxes, it doesn’t give them the right to run the state in a way that only benefits big casinos. ”

An income tax should be progressive: the more you earn the more you pay. Both a sales tax and flat tax are regressive, the poor paying as much as the rich.

Until it has a state income tax, Nevada will continue to be one of the most backward states in the nation.