Gov. Guinn calls Rep. Gibbons to discuss GOP tax rift

RENO -- U.S. Rep. Jim Gibbons took another shot at fellow Republican Gov. Kenny Guinn's proposed tax increases Wednesday, saying raising taxes during Nevada's current economic downturn is "the worst thing you can do."

Guinn declined again to respond to Gibbons publicly but telephoned the congressman later to "express his concern" about the continued criticism, Guinn's press secretary Greg Bortolin said.

"It was a frank talk, but I think it was friendly," Bortolin told The Associated Press.

"I think after they spoke, they have a better understanding," he said.

Gibbons, R-Nev., said on a local television talk show Wednesday that the state should examine renting cars and contracting out for some government services as a way to cut spending before it considers raising taxes in response to a looming budget deficit.

Gibbons said that he and Guinn have "agreed to disagree on this issue."

"During a time of economic slowdown, the trouble that we are having in the state of Nevada, this is probably not the time to raise taxes," Gibbons said on KRNV-TV's "Nevada News Makers."

Gibbons, a former pilot and state legislator from Reno serving his fourth term in the U.S. House, said the projected state deficit is based on the assumption that "we keep government spending at the same level we have been spending.

"You have to justify to me why we haven't looked at programs that need to be cut," the congressman said.

Gibbons said the state should consider purchasing fewer vehicles.

"Maybe we could rent cars from Hertz or Avis or Dollar," he said.

The Nevada Department of Transportation is another place to consider private contractors for jobs "at less expense," he said.

"Do we really need to have our own paving program?" he asked.

Notified of Gibbons' comments at midday Wednesday, Bortolin said Guinn would contact Gibbons to "explain the budget process" to him.

"There is clearly a lack of understanding on the budget on the part of the congressman," Bortolin said.

Guinn, a moderate Republican who was re-elected to a second and final term in a landslide in November, has proposed a variety of tax increases totaling almost $1 billion to address a projected $704 million revenue shortage.

Guinn and Gibbons ended up talking on the phone for about 10 minutes Wednesday afternoon, Bortolin said.

"When the governor expressed his concern about the comments, the congressman responded that he had faith in the governor and that he was pleased that Kenny Guinn was the governor facing these tough and difficult decisions at this difficult time," he said.

"The irony here is that philosophically, the governor is on the same page with Congressman Gibbons. The governor endorses the president's tax-cut proposal and the governor is conservative on fiscal matters. He has spent four years trimming back state government."

Gibbons took his first swipe at the proposed tax increases in a speech to state lawmakers in Carson City last week.

"You cannot demand of the taxpayer to discipline themselves during tough times if the same has not already been completely and thoroughly demanded of government," Gibbons said. He said Guinn has "not yet made his case" that levies are needed.

The state last raised taxes in 1991.