Nevada Gov. Jim Gibbons has called for a special session of the legislature next week. The purpose: raise taxes on Nevada families and employers.
However, Gibbons is either in denial or refuses to admit that his proposals are tax increases. The short answer: they clearly are and in pushing them Gov. Gibbons is breaking his pledge to not raise taxes, just as he did last year.
The mining industry is a major target under Gibbons’ tax plan. Gibbons wants to eliminate tax deductions that the mining industry has factored into its business plans and calculations for years. Under Gibbons’ proposal the mining industry would see their tax burden rise by more than 90% over the next biennium.
The other plank of Gibbons’ tax plan is to apply the state sales tax to online purchases from out of state retailers. This same policy has been implemented in a number of states across the country. However, the Gibbons administration clearly hasn’t studied the results from the states that have tried this. Had they, they would have seen that it is simply bad policy and does not raise revenue. Further proof can be found that administration has not done its homework in yesterday’s Las Vegas Sun, in which the Director of State Taxation Department was asked how much the online sales tax would raise. His answer: he has no clue. A more honest answer is that the online sales tax will raise no revenue. Just ask the Rhode Island Division of Taxation. In fact, this measure has been proven to kill jobs and reduce income tax revenue coming into the state (*was the case in NC, however NV has no income tax). And just when you thought this proposal couldn’t be worse, it’s most likely unconstitutional.
During Gibbons’ recent State of the State address he issued the following remarks:
“In this tough economy, we cannot ask our citizens to pay new taxes. They have nothing left to give. We cannot ask our businesses to pay more taxes. Many of them are struggling just to stay open … I reaffirm my word to you tonight: As long as I serve as your governor, I will not raise taxes.”
However, Gibbons is asking NV legislators to do just that in next week’s special session. Fortunately, the June 8 Nevada Republican primary is fast approaching and Nevada taxpayers will soon enough have an opportunity to hold Gibbons’ accountable for his actions. Americans for Tax Reform looks forward to reminding voters of Gibbons’ doublespeak throughout the campaign season.