Amendment to cap all taxes dies

The constitutional amendment proposed by Sen. Bob Beers to limit annual increases of all governmental revenues to inflation plus growth died Tuesday in the Senate Finance Committee.

The vote was 5-2 with only Beers, R-Las Vegas, and Barbara Cegavske, R-Las Vegas, supporting SJR5.

Beers said afterward he wasn't surprised. He said Monday he didn't think the proposal would get out of the committee and that he expects to take the issue to the voters.

"My sense is the people would like to have more control over how we spend the surplus tax revenue," he said.

The bill would have limited annual increases in all taxes, fees and other revenues received at every level of government from the state to local improvement districts, requiring a vote of the people to override the caps.

Finance Chair Bill Raggio, R-Reno, said there are serious problems in Colorado, which has had the so-called TABOR plan for a decade and that it sounds better than it works.

"It's one of those issues that sounds good, like term limits," said Raggio.

He said in Colorado, a very conservative Republican governor is now campaigning asking the voters to put TABOR under a five-year moratorium "because it's crushed their budget."

"That sends a pretty strong message that it's not working," he said.

Asked whether he thought the plan would fare better with voters, Raggio admitted voters tend to like anything that promises lower government spending.

"It sounds good until they come in here asking for services," he said.

Raggio was joined in opposing the proposed amendment by Democrats Minority Leader Dina Titus and Bob Coffin, both of Las Vegas, and Bernice Mathews of Sparks as well as fellow Republican Dean Rhoads of Tuscarora.

Rhoads said Monday he opposes the plan because making spending and taxing decisions is what members of the Legislature were elected to do and that a constitutional amendment is too restrictive.

Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.