Being a policy nerd, I actually had looked forward to reading Rory Reid’s 30-page vision for Nevada:  “Virtual Crossroads.”

   I regret to report that, after reviewing it in detail, I not only don’t see the beef – I don’t see the bun – all I hear is the sizzle.

   While it presents a sensible, generally-accepted diagnosis of the problems Nevada faces – it offers no substantive prescription for a cure.

   Sure, it points in a general direction, but that is about as useful as a doctor telling you to “eat well; get plenty of rest; and drink lots of fluids.” 

   The “specifics” he quotes from it are usually:

 ·    “we need a long-term plan for infrastructure rebuilding”  Sure. Yet, the fundamental problem isn’t that we need more plans drawn up - the Nevada Department of Transportation, as well as each county and city transportation department, have file cabinets full of plans.  We need the resources and the commitment to move forward now.  Enough of this planning, already.  Let’s salvage our infrastructure before it deteriorates any further – and let’s put people to work.  Now – not after another round of planning.

 ·    “perform performance review of state government to reduce wasteful spending”  That’s a rather obvious observation.  Every agency of state government has been repeatedly doing that.  It is not that more couldn’t be done.  But, the impression that we can fund adequate services in Nevada by just cutting out the “fat” in the state government is totally naive and unrealistic.  This is unproductive, cynical pandering for votes.  A real leader tells it like it is.

 ·    “provide tax credits to businesses who hire new workers”   Here the vision statement points to a recent Colorado initiative to give businesses that create at least 20 new jobs a 50% credit for the taxes paid on each new employee.  With their system, that equals a credit of about 3.8% - which is a reasonable savings.  However, in Nevada, our payroll tax is only 0.5% - cutting that 50% would give a typical per-job savings of $50 per year.  Show me any company that will hire a new person because of a fifty-dollar savings!  This is not how you transform our economy - this is fluff.

   I could go on-and-on critiquing each section.  Many simply draw the practical question:  “But where is the money for this going to come from?” to which you won’t find any answers.  At best, you hear the old refrain “Growth will pay for Growth.”  If we haven’t learned anything in this painful economic slowdown, haven’t we learned that is not true?  It’s a Ponzi scheme – a few did well - and the rest of us taxpayers are left on the hook.

   Ok, we are at a Virtual Crossroads (who doubts that?) -- but the question is: “how should we move forward?”  Sizzle is not an acceptable answer.

Law enforcement; state and local jails; and the courts would be freed-up to focus on authentic matters of public safety.

The ability to legally enjoy cannabis in a controlled environment would add immeasurably to the attractiveness of Las Vegas as a tourist destination, particularly with those of the “Baby Boomer” generation.

Obviously, consumers are willing to pay for these services which are provided by other consenting adults.  Furthermore, the businesses themselves are willing to collect and pay taxes to the state and to their local communities.  The question is:  why aren’t our “leaders” in Carson City at least discussing this taxing option?

A further step forward would be for the state to allow the regulation and taxation of prostitution to be an option for every county and city in Nevada.  It is far easier to ensure public safety of an activity that is legal.

Taxing, regulating and providing equal access to prostitution would reduce crime, improve public health, increase tax revenue, and allow for individuals to make their own choices.

 For every dollar which the government does not collect on these properties, it must make up for by collecting it from taxpayers.  This exemption has grown from a well-intentioned generosity by early lawmakers into a vast tax expenditure.  If this property were on the tax role, the schools and local units of government in Clark County would split an additional $18 million per year.  Any law that lowers a particular property owner’s tax liability has no different effect than a law that requires a direct payment to that property owner.

The basic facts on which properties receive this exemption – and why – should be compiled, made public and evaluated.  Then, explicit policy decisions must be made as to how much exemption should be given; to whom; and for how long. 

Nevada currently falls far short of even compiling this type of statistics, doing less than virtually any other state to make objective data available about where tax breaks are actually going and how much they costs.  This information can help us all - policymakers and taxpayers – to achieve reasonable oversight of these large tax expenditures.

    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.

    People across Nevada are fed-up and frustrated, anxious and angry, and so am I.  Today, as opportunities are disappearing before our eyes, much of government doesn’t even function as well as it has in the past.  Average taxpayers are feeling the squeeze of lesser services while the special interests are as comfy and arrogant as ever.

    Meanwhile, tepid, risk-averse political “leaders” of both parties ignore any suggestion that might possibly offend someone powerful; and scurry-about trying to patch-up this sinking ship by borrowing from our future – and our children’s future – just so it doesn’t sink on their watch.

    We can’t endure with these short-term, band-aid solutions.  I want to reform Nevada's tax system so that it facilitates economic growth by being simple, balanced, competitive and efficient.  Something is fundamentally wrong with a system where the poorest 20 percent of Nevadans pay 8.3% of their income in state and local taxes, while the richest 1 percent pays less than 2% of their income.  In other words, the tax burden on Nevada’s working poor is more than four times that of our wealthiest residents.

    Now is the time for enlightened leadership to take decisive action to fine-tune expenditures, eliminate bureaucratic obstacles, find more efficient ways of delivering services, and significantly broaden the burden of tax payments to better reflect the current realities of our state.

    During the next few days I will offer some specific suggestions of the kind of proposals that I think should be considered.

   While the wedding industry was often thought to be recession proof, we have learned the reality that is it is only recession resistant. Many Las Vegas and Reno wedding professionals now struggle to keep their doors open and some are out of business.  Nevada had a great chance to not only overcome the slowdown but to leap forward expanding opportunity for hundreds of local businesses.  Unfortunately, that was halted when the public voted to ban same-sex marriages here.

   It is reasonable to assume that tens of thousands of gay couples 

from around the world would have chosen Fabulous Las Vegas (as well as Mellow Tahoe) for weddings – from civil to lavish.  Local, county and state tax revenues would have soared – and lots of jobs would have been created in the private sector.

   Sadly, it would now take a statewide public vote – twice – to overcome this poorly-thought-through ban. Still, it should be done.

    That is an essential service and the Commission and the Gaming Control Board should get back to that focus.  No one granted them authority to be the arbitrator of what personal conduct is right or wrong; moral or immoral.  There is a great deal of difference between what a sober person might consider inappropriate – and what private conduct should be banned in an adults-only club at 2AM.  For the hospitality-based economy to thrive – and for well-paying jobs to endure – the regulators need to get back the basics of their mission.

• Intra-Nevada Remote Gaming

          State gaming regulations should be changed to allow individuals to establish an account, then place wagers anywhere in the state using specially created wireless devices, cell phones, computers, in-home & in-room cable-TV boxes and kiosks. The bets could be on sporting events, live 2-way table games or virtual games conducted by a computerized random-number generator.  Similar systems are in-place and working well in many parts of Europe.  By doing this, Nevada companies will have increased revenue resulting in the creation of more jobs and the generation of more taxes.

•  Nevada’s Global Innovative Gaming Initiative

          By launching Intra-Nevada Remote Gaming, we would establish Nevada as the worldwide epicenter of the fast-growing, regulated, interactive gaming industry.  California, Florida, New Jersey, Illinois, & Washington, DC - as well as the federal government - are currently reviewing legislation for allowing citizens to further utilize remote gaming. 

          The emerging regulated remote gaming market in North America alone is projected to be worth $13.4 billion in the next few years. (According to H2 Gambling Capital, London, the leading supplier of data and market intelligence regarding the global gambling industry.)

          Nevada can be the “Silicon Valley” of this new high-tech gaming industry – or not.  Thousands of jobs can be created in Nevada – or not.  As it looks right now, that’s not going to happen.  Nevada has not been encouraging, or even hospitable, to the global remote gaming industry.  This spring, the Global iGaming Summit & Expo will, for the tenth year, convene in Canada – not feeling welcome in Nevada.  That attitude must change if we are take advantage of the impending re-invention of gaming.  Remote wagering on horse racing is legal in most of the states in the US – but not here. 

          Nevada can be at the cutting-edge of this huge opportunity – or we can watch it go by and be viewed as a quaint and increasingly irrelevant part of Americana.  Those who now grow-up with i-phones and playing wii aren’t likely to be attracted to playing out-dated slot machines in our casinos when they turn 21.  But, implementing a Global Innovative Gaming Initiative is a real step to a thriving and globally-competitive economy

     Nevada can be the center-point for the impending convergence of digital entertainment, e-commerce, wireless gambling, skill-based games, person-to-person wagering, traditional casinos, virtual reality, and the use of cable and satellite TV for delivering interactive gaming content – or not.  The next Governor can make the difference.