EDITORIAL: What will taxpayers get for their $1.4 billion?
Las Vegas Review-Journal
January 18, 2020
Go big or go home, as they say. John Vellardita clearly didn’t want to go home.
Mr. Vellardita, who runs the Clark County Education Association, finally revealed last week the details of his long-simmering plan to transfer billions of dollars from taxpayers to his labor organization. The breadth of the money grab is impressive.
First, the union seeks to raise taxes by $300 million each year on the state’s largest gaming companies, which already supply nearly 40 percent of the Nevada’s general fund budget. (Full disclosure: The Review-Journal’s ownership also owns Strip casinos. But this paper has a well-documented, decades-long track record of skepticism when it comes to large tax hikes.) Mr. Vellardita seeks to qualify the gaming tax hike for the ballot, either forcing lawmakers to act in 2021 or putting the question before voters in 2022.
And like any good pitchman, Mr. Vellardita wasn’t finished. Wait, there’s more.
Next, the union unveiled a similar plan for the sales tax. Mr. Vellardita seeks to boost the levy by 1.5 percentage points and direct the money toward statewide education spending. Once again, the strategy is to qualify the proposal as an initiative, either forcing the Legislature to enact the tax hike next year or allowing Nevada voters to pass judgment in 2022. If enacted, this measure would jack the pot by a projected $1.1 billion annually while saddling Clark County residents with one of the country’s highest sales tax rates.The combined effect of these tax hikes would be to separate taxpayers from their money to the tune of $1.4 billion each year. To put that in perspective, the state’s entire general fund revenue stream didn’t hit $1.4 billion until the late 1990s. Let’s also not forget that this comes less than five years after lawmakers imposed the largest tax hike in state history to boost public school funding.
“This vote,” then-Gov. Brian Sandoval said in 2015 after the Legislature passed the $1.4 billion tax package, “moves us one step closer to cementing the legacy of public education by both raising accountability as well as increasing investment in order to suit the needs of generations to come.”