Job killers

As Nevada's political establishment dodges debate and tries to hide its plans for massive tax increases, the case for tax restraint is growing stronger.

On Tuesday, the nonpartisan Tax Foundation released an analysis that warns against two new taxes strongly supported by the Legislature's majority Democrats: a corporate income tax and a gross-receipts tax. Passing either of these levies in 2011 would have disastrous consequences for Nevada's already reeling economy, the tax research group reported.

Moreover, because California, Arizona, Oregon and Washington have raised taxes to protect government jobs and services, Nevada is better positioned for recovery by keeping its tax structure more favorable than those of its neighbors.

"Right now we are seeing a glimmer of a national economic recovery," said Joseph Henchman, the Tax Foundation's director of state projects and tax counsel. "State revenue increases will lag until people start investing and spending money. Nevada doesn't need to make it more unattractive to investors. ... As the economy improves, the state is well-positioned for capital investment and job creation."

The Tax Foundation analysis tracks very closely with a recent report from the Nevada Policy Research Institute.

Both studies found that a corporate income tax -- favored by state Senate Majority Leader Steven Horsford, D-Las Vegas, as a means of "stabilizing" Nevada's tax base -- is the most volatile levy administered by states and would therefore destabilize Nevada's tax base. Additionally, the studies say the corporate income tax and the gross-receipts tax are economically destructive because they discourage investment and job creation -- exactly what Nevada needs to get people the jobs that allow them to spend money.

Meanwhile, a tax study commissioned by the Legislature to provide cover for tax increases was due July 1, but its release has been delayed, perhaps until after November's elections.

For the next 3½ months, Democratic legislative candidates will be doing everything in their power to avoid detailed discussions of their tax policy goals. Their silence in this increasingly one-sided debate speaks volumes.

Tax increases are a losing proposition. They lose elections, they lose jobs and they lose opportunity.

Nevada has 14 percent unemployment and the vast majority of the state's homes and commercial properties are underwater. And politicians are seriously considering major tax increases? That's insanity.