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A new year, a new Nevada

Zachary Kenney-Santiwan
Zachary Kenney-Santiwan
Opinion
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When it comes to Nevada’s budget woes, 2020 was the straw that broke the camel’s back. After decades of unsustainable reliance on sales and gaming taxes the system has once again shown its fragility the moment it hits a bump in the road, and last year was much more than the average bump. The necessary response to the COVID-19 pandemic threw such a wrench into the state’s economic machinery that two special sessions had to be called to resolve the ensuing budgetary issues (among other problems) and even that wasn’t enough to bring us out of the woods. With the next regular legislative session rapidly approaching, and economic recovery in an ongoing pandemic being a slow burn to say the least, dealing with massive revenue loss is likely to take center stage.

Over a year ago, I wrote an op-ed calling for a revamp of Nevada’s tax system, to get us away from the various sales, gaming, and room taxes make up the backbone of our revenue stream. As it stands, the current system passes along a large chunk of our tax bill to the tourists, which sounds nice but ultimately makes our revenue stream extremely unreliable and regressive for the locals. One of the biggest indicators of this before the pandemic was the recession in the aftermath of 2008’s financial crisis in which fewer tourists and less spending resulted in massive cuts to vital social services and education. Even in “normal” times, dependence on these sources of revenue has left us with a perpetual inability to properly fund vital social and education services, in addition to forcing low income Nevadans to pay the most taxes.

The COVID-19 pandemic, as it has done with so many other issues, only exacerbates this. And at a time when teachers are going above and beyond to accommodate students, adequate healthcare access is more critical than ever, and Nevada is carrying one of the worst unemployment rates in the country, we can’t afford any more budget cuts to the essential services Nevadans need. Instead, state lawmakers should look at this historic situation as an opportunity to break away from the system that has failed us time and time again.

The groundwork for this was already laid in the special sessions last year. In a rare moment of boldness, legislators ended up passing multiple resolutions aimed at eliminating the antiquated provisions in the state Constitution regarding the taxation of mines. Back when the state was first established mining was our number one industry, and as such secured a 5 percent cap on taxes for its net proceeds. Attempting to increase revenue from the mining companies would certainly be a step in the right direction, especially given that the special session allowed for a head start on the amendment process. Speaking of amendments, I would also suggest pushing for some kind of graduated income tax. While many Nevadans may be averse to the idea, it’s at least stable — and preferable to sales taxes that force working class Nevadans to pay more than their wealthier counterparts.

Many have said then when the dust settles and this pandemic is truly over, there will be no returning to the world we left behind, and I must agree. We cannot simply go back to normal when normal only set the stage for the present disaster. I implore our lawmakers to continue to act boldly this upcoming legislative session and get us away from the status quo that brought us here. I also implore my fellow citizens to take an active role in pushing their legislators to not pivot to the policies that have left our state so strapped for cash. 2020 may have exacerbated our state’s budget problems, but a new year is upon us, and with it a new opportunity to build a Nevada that prioritizes the needs of its citizens and avoids the pitfalls of the past. We cannot pass it up.

Zachary Kenney-Santiwan was born and raised in Las Vegas. Zachary is an undergraduate student studying Social Work at UNLV. He has volunteered  for various political campaigns and nonprofits in the past, but have lately been focused on serving the city’s homeless population. Zachary can be contacted at [email protected]

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