Las Vegas NowGovernor Gibbons Speaks Out Against Tax Increases

Governor Gibbons Speaks Out Against Tax Increases

A mounting state shortfall the likes of which Nevada has never faced before has lawmakers looking at raising taxes to balance it. But Governor Jim Gibbons is no longer just waiting to veto it, he is launching his own offensive saying any new taxes will slow Nevada's recovery.

State lawmakers say they will try to finalize a budget by one week from Thursday, so they have time to try to override the governor's promised veto. The governor believes it is a path to failure.

"This is a most extraordinary time in the economy of the State of Nevada," said Gibbons.

Governor Gibbons says there's more at stake than just political philosophy. "We need to be cognizant of the fact that our economy is on the edge of a cliff. More taxes pushes this state over that cliff -- pushes every taxpayer over that cliff. And it is a long way down," he said.

As the legislature considers tax increases, likely on payroll and sales taxes, the governor says he will not let up. "I want to keep their feet to the fire and have them know that raising taxes is going to destroy the economy of this state -- push us back in terms of recovery from this recession," he said.

One of the most highly visible portions of the budget debate centers on higher education. The governor proposed a 36-percent cut, but legislators agreed to a much lower figure of 12.5-percent.

Governor Gibbons made no apologies for his plan. "Higher education has 1,832 employees making nearly as much or more than the governor. Some of them are making $300,000 and $400,000 a year," he said.

And the governor believes its not too late to derail the plan. "I think people should be outraged. I think they should call their legislator and say, 'What are you thinking? Can't you balance the budget?' I have to do it in my house without raising taxes on me," he said.

And to further try to make his case to all Nevadans, Gibbons is taking his message to rural Nevada early next week. He will visit Elko, Ely, Fallon and Winnemucca.