It’s the spending, stupid!

The 2018 federal deficit grew — surprise, surprise — because the federal government spent more money and revenues were flat due to tax cuts, not down mind you, but flat, according to The Wall Street Journal.

“Government receipts held steady at $3.3 trillion, despite strong economic growth and a robust labor market. …” WSJ reported. “But individual withheld income taxes rose just 1% in fiscal 2018, and corporate tax receipts declined 31% — both reflecting changes implemented as part of the sweeping tax overhaul enacted in December.”

But spending rose 3 percent overall. Increases in interest rates on the federal debt drove up spending by 14 percent, while defense spending increased 6 percent and  Social Security costs rose 4 percent.

So, the deficit is not entirely due to the tax cuts, as the Democrats will scream.

 

 

 

Editorial: No need for further sales tax exemptions

Question 4 on the November ballot proposes to amend the Nevada Constitution to require lawmakers to pass a law exempting certain durable medical equipment — such as oxygen tanks, wheelchairs and ventilators — from the state sales tax.

Who doesn’t want to lighten the financial burden on the infirm?

The problem is that the sales tax was designed to be a broad and fair tax affecting just about everyone equally, though food, medicine and some medical equipment are already exempt. It is estimated tax revenue would decline by about 0.025 percent if this were to pass, but it is likely everyone else eventually will be asked to make up the difference. Schools are already complaining of not getting enough tax revenue as it is.

“Basic budget principles state that when expenses exceed revenues, debt is created,” reads the argument against Question 4. “When the law requires state or local government agencies such as schools to be funded, the law expects a set amount of revenue to fund that agency. When a tax exemption reduces the amount of revenue expected, the agency has no choice but to request a replacement of the lost funding.”

State Controller Ron Knecht objects to the fact the proposal amends the Constitution, making modifications in the future difficult. “While this may be a good idea, it raises many questions in context of the various things the state does and does not tax,” he writes. “But even if one concludes as a matter of sound tax policy that these items should be tax-exempt, the legislature already has the power to exempt them now. Once again, enshrining these provisions in the constitution would prevent timely reform of any parts of the proposal that may be found to merit change or repeal later.”

It is also noted that the language is vague and it is difficult to predict just what lawmakers might exempt and whether that estimate of 0.025 percent lost revenue will hold up.

“Tax exemptions have consequences for the taxpayer; the same consequences as tax subsidies, tax breaks, tax abatements, and tax incentives,” the argument against states. “The Nevada Department of Taxations’s 2013-2014 Tax Expenditure Report states that Nevada has 243 such tax expenditures that cost taxpayers over $3.7 BILLION a biennium. Who is footing the bill for all those exemptions? You, the local taxpayer.”

There is no evidence the current sales tax has in any way inhibited the ability of people to purchase necessary medical devices. We need not burden the Nevada Constitution with another special carve out for certain special interests.

A version of this editorial appeared this week in some of the Battle Born Media newspapers — The Ely Times, the Mesquite Local News, the Mineral County Independent-News, the Eureka Sentinel,  Sparks Tribune and the Lincoln County Record.

Newspaper column: Who has the better plan for Nevada’s economic future?

Laxalt and Sisolak (R-J pix)

Plans or platitudes?

That is our choice when it comes to electing the next governor of Nevada.

Republican Adam Laxalt, currently the state’s attorney general, has outlined clear and precise plans for helping grow the economy of the state, while Democrat Steve Sisolak, currently a Clark County commissioner, offers vague platitudes.

“First and foremost, we must recognize that one of the most important things we can do to promote economic growth and opportunity is to protect Nevada’s status as a safe haven from high taxes,” candidate Laxalt says on his campaign website. “Nevada has long been a place where we have recognized that keeping taxes low on our businesses, families and individuals provides them with the economic freedom they need to prosper and get ahead.”

He offers that a low tax burden allows private businesses to innovate, expand and hire more workers. He has specifically called for the repeal of the burdensome and complex commerce tax pushed through the Legislature by Gov. Brian Sandoval.

For his part Sisolak has called for a repeal of the property tax cap that limits annual property tax increases to 3 percent for private residences and 8 percent for commercial property. He also supported increasing room taxes in order to spend $750 million in public money to build a stadium for a billionaire professional football team owner.

Laxalt has opposed raising the minimum wage, which would hurt small businesses’ ability to hire young and low-skilled workers, while Sisolak has supported increasing the minimum wage.

Laxalt supports the Energy Choice Initiative, Question 3 on the November ballot, that would allow businesses and home owners to seek less expensive electricity suppliers, but Sisolak has come out against it.

Laxalt is also calling for reining in Nevada’s burdensome business licensing requirements that are the second-strictest in the nation, second only to California. “Upon taking office, I will propose an immediate freeze on all business license fees at current levels until we can put forward a thorough, open-to-the-public review of the revenue and whether the fees are becoming too disadvantageous and onerous for Nevada’s job-providers, particularly our small businesses,” the Republican candidate proposes.

When it comes to access to public land in Nevada, Sisolak’s platitudinous platform calls for: “Protect Nevada’s natural beauty. Not only does chipping away at our public lands — such as Gold Butte and Great Basin  — damage our environment and communities, it hurts the state’s outdoor tourism economy.”

On the other hand, when President Obama designated the 300,000-acre Gold Butte National Monument, Laxalt put out a press release saying, “Although I am not surprised by the president’s actions, I am deeply disappointed at his last minute attempt to cement his environmental legacy by undermining local control of Nevada’s communities, and damaging our jobs and economy.”

Sisolak wants the government to continue to pick winners and losers as it has with tax breaks and handouts for electric car companies and a football stadium and expand giveaways to small businesses. “Support Nevada’s small businesses with incentives and grants so it’s not just the big companies that benefit from our help,” his website states.

Instead of handouts to a select few, Laxalt calls for creating what he calls a “regulatory sandbox” in Nevada. “Earlier this year, Arizona created the first regulatory sandbox in the United States,” Laxalt explains. “This innovative concept is based on the explicit recognition that financial regulators cannot develop new regulations as quickly as new financial instruments are developed. The sandbox instead gives firms wide latitude to experiment with new products as long as they’re up front with regulators about the risks involved.”

While Sisolak pushes the notion that government knows best, Laxalt understands that government should get out of the way.

“Today, many politicians in our state want to take us in a radical, reckless new direction,” he says. “They believe that bureaucrats, rather than free individuals and entrepreneurs, know best how to create jobs and economic growth. Their vision for Nevada is one with higher taxes, more crippling regulations, and fewer of the choices and opportunities that only liberty can provide. They want to take us away from all that has long made Nevada so unique. They would replace Nevada’s heritage of freedom and opportunity with the failed radicalism of California.”

That sounds like a sound plan.

Thomas Mitchell is a longtime Nevada newspaper columnist. You may email him at thomasmnv@yahoo.com. He also blogs at https://4thst8.wordpress.com/.

Editorial: Passage of Question 5 will do more harm than good

Question 5 — the Automatic Voter Registration Initiative — on the November ballot is a pointless and costly endeavor likely to do more harm than good.

The proposal would require the Department of Motor Vehicles (DMV) to automatically send personal information to the registrar of voters so a person can be registered to vote when receiving a driver’s license or making a license change, unless the person affirmatively declines in writing.

It is pointless because the DMV already sends information to the registrar of voters if a person agrees. All Question 5 does is change the system from an “opt in” to an “opt out.” It is a distinction without a discernible difference.

The backers of the initiative argue this will make it more convenient to exercise the right to vote and even save money.

“Voting is a fundamental right,” the argument for passage reads. “It is our most important way to guarantee our rights and freedoms — and it’s a responsibility to be taken seriously by both the people and the government. Yet our outdated voter registration process makes it unnecessarily difficult for eligible Nevada citizens to have their voices heard and leaves our registration system vulnerable to errors. … It will reduce the risk of fraud and lower costs.”

In fact, Gov. Brian Sandoval vetoed the initiative during the 2017 legislative session, saying, “it extinguishes a fundamental, individual choice — the right of eligible voters to decide for themselves whether they desire to apply to register to vote — forfeiting this basic decision to state government. … the core freedom of deciding whether one wishes to initiate voter registration belongs to the individual, not the government.”

His veto message also said the change “would create an unnecessary risk that people who are not qualified voters may unintentionally apply to vote, subjecting them to possible criminal prosecution, fines, and other legal action.”

As for lowering cost, the fiscal note for Question 5 says it would cost $221,000 to implement and more than $50,000 annually to maintain.

As for reducing errors, the California DMV, which has a similar automatic voter registration system, recently reported it sent 23,000 erroneous voter registrations.

The argument against passage of Question 5 points out, “The proposed ‘Opt Out’ system shifts the responsibility of registering to vote from the individual to the government. Nevada residents who do not want to be registered will have to affirmatively ‘Opt Out’ or have their names and addresses automatically added to voter rolls and become public information.”

It also notes there is no evidence this change would increase voter turnout.

There is no evidence this measure will accomplish anything other than increased opportunities for errors. We shouldn’t try to drag motorists kicking and screaming into the voting booth.

A version of this editorial appeared this week in some of the Battle Born Media newspapers — The Ely Times, the Mesquite Local News, the Mineral County Independent-News, the Eureka Sentinel,  Sparks Tribune and the Lincoln County Record.

Newspaper column: Groups try to thwart wild horse experiment

It worked during the Obama administration, but will it work with the Trump administration?

A gaggle of self-styled wild horse advocate groups have filed lawsuits in Washington, D.C., and Portland, Ore., demanding that the Bureau of Land Management abandon plans to spay 100 wild mares in an experiment to help determine a better mechanism for curtailing the ongoing overpopulation on the range. The groups claim the surgical sterilization is dangerous, barbaric and inhumane.

In 2016, a similar project was abandoned by the BLM when some of the same groups filed lawsuits. At that time the BLM intended to partner with Oregon State University, but the university backed out in the face of protests. This time the BLM planned to link up with Colorado State University, but that school has already backed out.

In mid-September the BLM announced plans to use helicopters to round up 650 excess wild horses this month from the Warm Springs Herd Management Area near Hines, Ore., and to initiate research on the effects of spaying mares and returning them to the range. The area has a horse population of about 800 but can support less than 200 animals.

Horses removed from the range are to be sent to Oregon’s Wild Horse Corral Facility in Hines. Some will be put up for adoption and others selected for participation in the spay and behavior research.

The BLM press release announcing the plans stated, “The public is welcome to view the Warm Springs HMA gather and spay procedures.”

But one of the grounds cited in the lawsuits — filed by Front Range Equine Rescue, the American Wild Horse Campaign, the Cloud Foundation, the Animal Welfare Institute and others — is that the project violates the First Amendment, because outside groups are not adequately allowed to observe and record the surgery.

“To date, the BLM has refused to allow a meaningful opportunity for media or the public to observe and record these procedures,” said Nick Lawton, a lawyer for one of the groups. “The BLM’s refusal to allow meaningful access to observe and record these experiments thwarts the important newsgathering objectives that Plaintiffs aim to achieve by observing and documenting the BLM’s treatment of wild horses, and thus violates Plaintiffs’ rights under the First Amendment of the U.S. Constitution.”

The groups also claim the spaying method — called ovariectomy via colpotomy, in which a veterinarian reaches into a mares’ abdomen through an incision and severs and extracts the ovaries — is “unscientific, inhumane and dangerous, and will result in pain, suffering and potentially life-threatening complications for wild mares.” They claim this violates the 1971 Wild Free-Roaming Horses and Burros Act and the National Environmental Policy Act.

The BLM spends $50 million a year, or 60 percent of its annual budget for handling wild horses and burros, warehousing 46,000 of them in corrals and private pastures, while there are 83,000 wild horses and burros on a range that can adequately sustain no more than 27,000.

In a report to Congress earlier this year the BLM explained the problem and offered different options: “Wild horses and burros have no natural predators and herds can double in size every 4 years. As herd sizes increase, the forage and water resources from the land become depleted, resulting in starvation, dehydration, and death. In their search for food and water, the animals often move onto private land or along highways resulting in safety issues and habitat destruction for horses and humans alike. Public-land ranchers have cut back on grazing to accommodate increasing numbers of wild horses and burros.”

The report noted that overpopulation of these non-native animals is degrading the ecosystem and crowding out native greater sage grouse, pronghorn, deer, elk and bighorn sheep.

According to a CNN account, two of the groups involved — Front Range Equine Rescue and the American Wild Horse Campaign — have called for using an injectable birth control vaccine called Porcine Zona Pellucida (PZP) instead of surgery.

But surgery renders the mare sterile for the rest of its life, which can be as much as 25 years, while PZP must be administered every one to two years and requires more frequent captures of the horses, which can lead to injuries. The BLM is already experimenting with PZP.

The animal advocate groups are really making huge assumptions about what is best for the animals. Until the experiment is performed it is impossible to say what is best for the horses. Let’s hope the BLM doesn’t back down again in the face of litigation.

Thomas Mitchell is a longtime Nevada newspaper columnist. You may email him at thomasmnv@yahoo.com. He also blogs at https://4thst8.wordpress.com/.

CNN pix

Editorial: Question 6 would cost money and provide no benefits

Current Nevada law requires 25 percent of the state’s electric power to come from renewable energy sources — such as solar, wind and geothermal — by 2025, but Question 6 on the November ballot asks voters to raise the requirement to 50 percent by 2030.

The initiative claims this will reduce the state’s reliance on fossil-fuel power plants and clean up the air.

But recent reports out of Europe note that carbon emission actually grew by 1.8 percent in 2017 despite a 25 percent increase in wind power and 6 percent growth in solar. Part of this is explained by the fact idling fossil fuel plants must be quickly brought online when the wind doesn’t blow and the sun doesn’t shine, and, just like cars in traffic, idling engines produce more carbon emissions. Also, maintaining both power sources increases infrastructure costs. The cost of electricity in Europe has increased 23 percent in the past decade.

So, Europeans are paying more and getting no emission decrease.

Nevada is already getting 20 percent of its electricity from renewables as each year the requirement ratchets up toward the current 25 percent goal, while over the past five years the cost per kilowatt-hour of power across all sectors has increased 11 percent in Nevada, though nationally rates fell 1 percent, according to figures from the U.S. Energy Information Administration. Meanwhile, carbon emissions due to power generation have largely flatlined, according to the Nevada Division of Environmental Protection.

Arizona also has on the ballot a proposal to increase renewables to 50 percent by 2030. Both measures are being bankrolled by San Francisco billionaire Tom Steyer.

Heartland Institute analyst James Taylor took a look at what impact the Arizona proposal would have on electricity bills there if the initiative passes. Taylor estimated that Arizona’s current 7 percent renewable power costs consumers $304 a year in higher rates and extrapolated that the 50 percent requirement could increase bills by more than $2,000 a year.

In 2013 Nevada Policy Research Institute commissioned Beacon Hill Institute of Suffolk University to analyze the impact of the current 25 percent renewable power portfolio (RPS) requirement. The report was titled “RPS: A Recipe for Economic Decline.”

Using a range of estimates from low to high, Beacon Hill estimated power bills could increase anywhere from less than 2 percent to nearly 11 percent. That high end estimate has been reached seven years early.

The study also said the 25 percent standard could cost Nevada between 590 and 3,070 jobs by 2025. Image the impact in doubling renewables in the next five years.

But those costs are outweighed when you calculate all the pollutants and greenhouse gases that won’t be poured into the air and cause the planet to overheat, some still argue.

“One could justify the higher electricity costs if the environmental benefits — in terms of reduced greenhouse gases (GHGs) and other emissions — outweighed the costs,” Beacon Hill reports. “However, it is unclear that the use of renewable energy resources — especially wind and solar — significantly reduces GHG emissions. Due to their intermittency, wind and solar require significant conventional backup power sources that are cycled up and down to accommodate the variability in the production of wind and solar power. A 2010 study found that wind power actually increases pollution and greenhouse gas emissions. Thus, there appear to be few, if any, benefits to implementing RPS policies based on heavy uses of wind.”

Since Question 6 will likely cost Nevadans money and jobs while producing no discernible benefit, we encourage a no vote this November.

A version of this editorial appeared this week in some of the Battle Born Media newspapers — The Ely Times, the Mesquite Local News, the Mineral County Independent-News, the Eureka Sentinel,  Sparks Tribune and the Lincoln County Record.

BLM pix