Deceptive Statistics Alert

Local opinion columnist Geoff Schumacher wrote in today’s Review Journal that Nevadans should pay more taxes:

Lawmakers shouldn’t be scared to death of raising taxes. Nevada’s tax burden is the nation’s second lowest, according to the nonpartisan Tax Foundation. This sound sgreat on the surface but it crassly ignores the significant social costs. Idealogues aside, most Nevadans understand that maintaining the many facets of a decent state requires adequate funding.

Indeed, the Tax Foundation is nonpartisan, and did find Nevadans’ tax burden is the nation’s second lowest. But it also found that our tax extraction from non-residents is amongst the nation’s highest, and, most importantly, that our state and local government spending (including what Nevadans and non-Nevadans are required to pay) ranks 25th amongst all states. Indeed, our state and local funding is already adequate.

Revisiting public workers’ pay

Local government unions are being asked to voluntarily reduce pay levels – or face layoffs.

Clark County officials, led by Commission Chairman Rory Reid, met with leaders of the Service Employees International Union and the police and fire unions Thursday to deliver the grim news. Expenses are outpacing revenues, Reid said. Thus, current labor costs are simply unsustainable, he said.

The three unions represent 12,000 workers, and their leaders bristled.

“A meeting like we had has never been seen,” Reid said later. Prior to this week, reopening contracts has “never even been suggested as an option.”

Renewable Energy Portfolio Mandate

Nevada’s legislature has mandated that Nevadans purchase more expensive “renewable” energy. Our utility companies are complying, although full compliance is years away. Although mandated under color of the law, the extra amounts Nevadans pay for the mandate is not technically a “tax.”

No one has been able to calculate exactly how much more the typical Nevada family pays in their power bill for this mandate, but everyone agrees costs have been increased, and will continue to be increased even more as the legislature’s goal is pursued.

Public School Costs Surprise Most

William G. Howell, associate professor in the Harris School of Public Policy at the University of Chicago, and Martin R. West, assistant professor of education at Brown University, found that most people are off by half when asked to guess how much they and their fellow taxpayers spend on government schools.

In sum, Americans think that far less is being spent on the nation’s public schools than is actually the case. The vast majority of the public thinks we spend amounts that can only be described as minuscule, and almost 96 percent of the public underestimate either per-pupil spending in their districts or teacher salaries in their states.

Links: Hoover Institution article describing Drs. Howell & West’s study