Las Vegas NowGovernor Assailed for Tax Veto

Governor Assailed for Tax Veto

State lawmakers cheered their override of Governor Jim Gibbons' veto. The governor vetoed eight bills that would increase taxes and raise $781 million. The last of those vetoes have been overturned, but the standoff between the Republican governor and Democratic legislature remains.

State lawmakers say they need to increase taxes to cover Nevada's shrinking budgets and growing responsibilities. The governor says the state should not raise taxes, but make massive cuts to the budget.

Friday, over 100 union members from different professions rallied together to support raising taxes. "I would absolutely support tax increases. Nevadans and Nevada businesses are not overtaxed," said teacher Peg Bean.

Bean teaches fourth and fifth grade at Ronzone Elementary School. A tax increase would hit her hard, but she says it's a necessary evil given the state budget crisis and a better option than massive cuts. "These tax increases are barely going to keep things at the level they are at now. We are not looking at more money for education, we are just trying to keep it at current levels," she said.

Governor Gibbons passionately disagrees. He criticized any lawmaker voting for the override. "They believe in tax increases and killing jobs and crushing our economic recovery. That is my impression of what they are doing," he said.

Now he says the state is stuck with the legislature's budget. "This legislature is simply adding to the misery of the people of Nevada," he said.

But the people at the rally, like Peg Bean, trust state lawmaker's judgment. "Tax appropriately. We don't want to get to the position where we are taxing the life out of people, but appropriate taxes," he said.

The tax increases will raise about $781 million. That includes a 0.35-percent increase in sales tax, a 0.54-percent increase in payroll tax for businesses with $250,000 or more in salaries, a vehicle fee increase, and doubling the state business license tax.