Income tax would boost education

The quality of a society is predicated upon the power of its public schools. Thomas Jefferson told us more than 200 years ago that if our new nation was to survive, it needed an enlightened citizenry. He created the University of Virginia. From public universities we grew a nationwide system of higher education. Our universities, and the public K-12 schools that grew up around them, served our nation well. However, in recent decades we have begun a backward slide, especially in academic performance. Competition is keen. Demand for excellence is relentless. As a nation, we rank 25th of 38 industrial nations in public school reading, mathematics and science. Nevada ranks lower.

The U.S. generally spends more money than other industrialized nations on public education. But those nations are rapidly investing more of their national treasure in their public schools, and they are clearly producing superior academic results.

Since the U.S. and Nevada compete in the international marketplace, its schools must educate for a sophisticated workforce, academically competent, able to solve complex problems. Although the amount of money isn't the most critical factor in producing first-rate schools, sufficient funds (creatively applied) under the direction of highly qualified school leadership is the sine qua non for producing superior student results. Nevada, unfortunately, has rarely found itself with adequate funding for its schools. It ranks 41st of the 50 states in per-pupil funding. Not a good place to be when trying to stimulate production and compete internationally.

Forty-one states currently have a state income tax in their revenue structures. The income tax is vital to a balanced revenue system. Most rely on three major sources of revenue: income tax (individual and corporate), sales tax, and property tax. The income tax is progressive and fair for all income groups. Sales and property taxes tend to be regressive - more impact on the poor and less on the most affluent.

Of the nine states that do not have a state income tax, most have difficulty providing adequate funding for their schools. Some have enormous oil and mineral wealth but seem to lack the will to tax themselves appropriately to fund their schools. Nevada, unfortunately, has great mineral wealth (gold), but that corporate wealth has been protected by constitutional restrictions since statehood and provides little benefit to our public schools.

The nation must improve the competitiveness of its schools. We once led the world in quality education. Not today.

Nevada will have to be smarter about tax policy. First, policymakers must develop the political will to tax equitably to produce the well-educated, enlightened citizenry Jefferson envisioned. There must be a willingness to broaden our tax base and to make it possible to implement a state income tax devoted to education. Currently, the personal income tax is constitutionally prohibited and a mining tax is constitutionally restricted. These were both bad policy decisions and need to be overturned.

Second, begin the process of implementing a state income tax. In 1988 and 1990, petitioners restricted the implementation of a state income tax in the Nevada Constitution. Scholars warned that a personal income tax should not be constitutionally prohibited. They argued that it might someday be needed. The time is now.

Change the Constitution.

Most are aware of the anti-tax culture that has existed in Nevada for 146 years. These 19th century "cultural warriors" believed taxes were evil; favored industries were protected; and government should be kept small. Their views are still with us and have impeded economic progress and diminished our state's educational system for decades.

One need only look to observe that if the anti-tax and anti-government wags were right, Nevada would be at the top of the economic/education recovery list. We already have the lowest taxes and the smallest government in the nation. We're not at the top. Not even close.

• Eugene T. Paslov of Carson City writes a weekly column for the Nevada Appeal.