As Governor, I pledged to Nevada’s families and business owners that I would keep their taxes low and affordable. Doing so will ensure that businesses and consumers are not forced into shouldering the burden of runaway government spending. In the Nevada State Legislature, in Congress and now as Governor, I remain steadfast in my commitment to ensure that taxpayer dollars are spent efficiently and responsibly.
New or increased taxes would have a stifling effect on our economy, forcing Nevadans to fund irresponsible tax and spend policies.
The tremendous growth and prosperity that Nevada has experienced over the past ten years is due largely in part to our pro-business tax climate. I will continue to fight any and all efforts to raise taxes on the hardworking people of this state. Allowing businesses and employees to keep more of what they earn creates jobs, increases wages and salaries for families and provides for a stronger economy.
Unique in many ways, Nevada chooses to be a low-tax state, and in recent years, we have moved up from No. 6 to No. 3 in the Tax Foundation’s annual State Business Tax Climate Index.
This low-tax, pro-business environment has led to billions of dollars in investments and has created thousands of new jobs.
However, like many states across the nation, Nevada’s statewide revenue collections have not been keeping pace with previous fiscal projections, thus prompting us to take necessary steps to prepare for revenue shortages.
While Nevada’s forecasted shortfall is primarily driven by a decrease in sales tax revenues, the nationwide slowdown in the housing market has also significantly impacted the economy. Recognizing the significant impact that this will have on homeowners and business, the sate provides many services to help families and business owners facing foreclosure.
To address the challenge of declining revenues, I implemented a modest and broad-based 4.5% reduction in spending for all State agencies and departments. While some are calling for tax increases, I suggest that higher taxes are the last thing that hard-working Nevadans can afford when they must pay more for basic essentials such as food, gas and electricity. Nevada families and businesses must live within their budgetary means; likewise, it is not unreasonable to expect state government to do the same.
Despite these challenges, it is important to note that the economy of Nevada is still strong, and historically, every period of decreased sales tax revenue has been followed by an increase in those same revenues in the following years.
I continue to explore many innovative pro-business policies that will reduce unnecessary bureaucratic red-tape, ensuring that we remain a business friendly state.
The quality of life we enjoy here in Nevada – locally, regionally, and statewide – is a direct result of continued economic development and growth. This growth allows us to maintain and build new roads, build and fund schools, and provide law enforcement services and first responders who keep our children and families safe. As Governor, I will continue to support responsible policies that make Nevada the best place to grow a business.