Nevada coalition questions governor's no-tax raise stand

A coalition of advocacy groups released an alternative State of the State message on Friday challenging Gov. Brian Sandoval's stance to balance the budget without raising taxes or fees.

The Nevada Values Coalition called for higher taxes on the mining industry, a luxury services tax and a net profits tax on businesses that have annual profits exceeding $500,000.

The Republican governor, who will deliver his State of State address Monday, has said raising taxes isn't an option when Nevada leads the nation in unemployment, foreclosures and bankruptcies.

He has proposed 5 percent salary cuts for all state workers and has warned of other deep cuts and "shared sacrifice." He reiterated his position Friday after a new report showed Nevada's jobless rate grew to 14.5 percent in December, a new record high.

"The sheer number of unemployed in our state is exactly why I've said we cannot burden struggling businesses with tax increases, and why we cannot ask the struggling family to pay more," Sandoval said. "We must allow sun-setting taxes to expire at the end of June and provide businesses the environment in which to begin hiring again.

But his solution to the state's budget crisis will disproportionately harm the state's neediest residents, the coalition said.

"Governor, what sacrifices are you requiring of wealthy corporations and their fat cat lobbyists?" Bob Fulkerson, executive director of the Progressive Leadership Alliance, asked in a video posted on YouTube. PLAN is part of the coalition that also includes teacher and state worker unions groups and social service agencies.

Fulkerson said Nevada taxes are among the lowest in the nation. No corporate income tax and personal income taxes are barred by the state constitution.

"If lower taxes meant more jobs, why are we leading in unemployment?" Fulkerson asked.

"Unfortunately, it's obvious the governor has been caught up on the no new taxes sound bite that threatens to make a terrible situation worse," Fulkerson said. "No new taxes is just another way of saying no solutions."

PLAN leaders said they are organizing a demonstration outside the Legislature during Sandoval's speech.