No man’s life, liberty, or property are safe while the legislature is in session,” is often attributed to Mark Twain. Though the quote is most likely apocryphal, its veracity is likely to be affirmed when Nevada’s newly elected lawmakers gather in early 2019 in Carson City.
The voters, primarily in the urban counties of Clark and Washoe, have loaded up the Legislature with Democrats — a two-thirds supermajority in the Assembly and one shy of a supermajority in the state Senate. And that seat could swing to the Democrats if a planned recount in a district in Clark County changes the outcome. The Republican candidate won the seat by a razor-thin 28 votes.
That supermajority is significant because it takes two-thirds of each wing of the legislative building to pass any tax increase. This is due to a constitutional amendment known as the Tax Restraint Initiative pushed by former Republican Gov. Jim Gibbons and approved by voters in 1994 and 1996.
Recent legislative sessions have proven that the Democrats are salivating for higher taxes to satiate their public union enablers in state and local governments and the public education system.
To add to the level of jeopardy, Nevada has elected a Democratic governor, former Clark County Commissioner Steve Sisolak, who is unlikely to wield a veto pen on any tax hikes that reach his desk.
In an interview shortly after the election, Sisolak said, “I’ve committed, we’re not going to be raising taxes. That’s not my intent,” saying existing funds could be reallocated. But earlier in the campaign he told an interviewer, “One of the ways we’re going to have to pay for it, and people don’t want to hear it, is property taxes.” He also has a track record of backing tax increases. He was a key backer of spending tax money to build a professional football stadium in Las Vegas for a billionaire team owner.
On top of that, the lieutenant governor, who presides over the Senate and can vote in the case of a tie is Democrat Kate Marshall. Additionally, the state treasurer, controller and attorney general are all Democrats.
One of the more likely targets will be our property taxes. Currently the state imposes a cap on annual property tax increases — 3 percent for homes and 8 percent for businesses. There has been talk of changing that, as well as eliminating or altering the depreciation on property assessments currently allowed by law. Such changes could cause property taxes to double or even triple in some cases.
Sales taxes hikes, adjustments to the Commerce Tax on businesses, as well as various fees are likely to be on the table.
Democrats are also likely to be open to proposals to allow state public employees to unionize just like local government public workers, who currently are paid 46 percent more than those in the private sector in Nevada — 57 percent more when generous retirement benefits and paid leave are accounted for. Guess who would pay for that.
There is also discussion about ending Nevada’s status as a right-to-work state, which would devastate small businesses.
Additionally, Sisolak and many of the incumbent and newly elected Democrats have expressed a desire to increase the minimum wage incrementally toward $15 and hour, which also would cripple many small businesses and drive some from the state.
Keep your phones and your pens handy in the coming months. You’ll want to use them to let our representatives in Carson City know what we think of these potential legislative efforts. — TM