Welfare Programs for Special Interests

    One step in seizing control of Nevada’s budget problem is to shine light on the murky, shadowy and under-the-radar parts of the state budget known as “tax expenditures.”  These are losses to the state treasury resulting from politicians having granted certain deductions, exemptions, or credits to specific categories of taxpayers.  These exemptions work like welfare programs for special interests and make up a substantial part of the budget. 

    Nevada is one of only 8 states in the US that does not compile a “tax expenditure report” – something with details on where state tax breaks are going and how much they cost.  Such a report is a necessity as we seek to restore fairness, sustainability and transparency to the state tax system.

    This relevant information would help us all - policymakers and taxpayers – to evaluate the hundreds of credits, exemptions, deductions and exclusions that permeate the Nevada tax base, turning it into Swiss cheese rather than a sensible tax code.  The worst part is that, once exemptions are written into the tax code, they continue indefinitely — regardless of how costly, dated and unfair they may become over time.

    Every dollar the state forgoes in tax revenue is one less dollar it can spend on schools, law enforcement, or other priorities — and one more dollar it must raise through other taxes.

    It is time we have an annual, comprehensive, easy-to-understand “Tax Expenditure Report” and make it widely assessable on the state’s website.

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