Reid My Lips - A state tax hike may sink the Senate's No. 2 Democrat ~ John Fund

Opinion Journal / The Wall Street Journal. ^ | July 17, 2003 | John Fund

[Elle Bee]

A state tax hike may sink the Senate's No. 2 Democrat.

Thursday, July 17, 2003 12:01 a.m.

Sen. Harry Reid of Nevada, who as minority whip is the most powerful Senate Democrat after Tom Daschle, has just had his re-election thrown into jeopardy by five fellow Democrats who sit on the Nevada Supreme Court. The justices, joined by the court's lone Republican, threw out a constitutional amendment that required state tax increases be approved by a two-thirds vote of the Legislature, saying it was superseded by the Nevada Constitution's mandate to fund public education.

[Elle Bee]

		July 15, 2003

REVIEW & OUTLOOK

Nevada's Judicial Dice-Throwers

In a state that has given us the quickie divorce, legalized prostitution and gambling, you'd think it would be hard to raise eyebrows. But compared to their Supreme Court, Nevada's sin industries are looking downright respectable. In a landmark 6-to-1 ruling Thursday, Nevada's justices came up with a real doozy: Essentially they ordered state legislators to violate the state constitution they have sworn to uphold.

That's the real meaning of their ruling that a Nevada constitutional amendment requiring a two-thirds majority in both state houses for any tax hike was trumped by another constitutional requirement that the state fund public education. The dubious reasoning here was that while the education requirement was "substantive" and "specific," the supermajority requirement for a tax increase was merely "procedural" and "general."

Leave aside for a moment the singular idea that procedural requirements are not as essential to self- rule as other provisions. (The Federalist Papers are all about such unsubstantive "procedural" details as the separation of powers.) Or that the case can be made that it is the supermajority requirement that is specific and the education requirement that is general.

This case shouldn't have been before the court at all. And it wouldn't have been had Republican Governor Kenny Guinn not taken the extraordinary step of suing his own state legislature when it refused to push through nearly $1 billion in tax increases he wanted.

Yet the move has paid off for Mr. Guinn, if not for Nevada taxpayers or the cause of self-government. With his state's constitution now handily disposed of, the Governor looks set to get his way. The assembly passed a bill Sunday that would increase taxes by a record $788 million over the next two years. Meanwhile, the only real argument in the Senate appears to be over what precise form the tax increases will take.

Now, Governors feuding with legislators over budgets is nothing new. But by resorting to a judicially enforced tax decision that properly belongs to the elected representatives of the people of Nevada, the Governor and the judges have put themselves in a class all their own. At least the state's gamblers and prostitutes can claim to be working within the law.

By contrast, to conduct their business Nevada's highest court and its chief executive pulled an end run around a clear constitutional imperative in order to carve out an exemption for a specific spending interest. In this case that happened to be public education. But who is to say other justices won't discover other special interests?

You can bet, moreover, that spendthrifts elsewhere are watching Nevada closely. Already a spokesman for Gray Davis has told the Associated Press that a similar suit was "something that we could possibly look at in the future." So much for "of the people, by the people, and for the people."

Remember them? It's not as if the people of Nevada didn't know what they were doing when they voted overwhelmingly, twice, for the supermajority tax amendment. Voters know that without some kind of discipline, politicians will always have a hard time saying no to intense spending lobbies. And Nevadans are hardly alone. Other states -- Colorado, Arizona and Florida -- have similar tax or spending disciplines that require either supermajorities or voter approval. Not coincidentally, they are also the states that have generally weathered the economic slowdown of the past few years better than their peers.

The states facing the worst budget shortfalls tend to be those either with no tax or spending limits or limits that they've weaseled out of. California is the most notorious. What we're seeing in Nevada today is largely a replay of what led California to its present woes.

After Proposition 13 in 1978, Californians also passed something called the Gann Amendment, which limited increases in state and local appropriations from tax revenue to population growth plus inflation. But voters later watered this down, allowing an exception for -- you guessed it -- education. As the Cato Institute points out, if California had held spending growth to the terms of the Gann Amendment, Governor Davis would not have a budget crisis today.

Apart from Mr. Guinn and the teachers unions, the folks happiest about this are probably Florida's high court judges, who now have company in making a mockery of self-government. It appears Governor Guinn will now get his tax hike. But let's remember that in suing the state's legislators, he was in reality suing his own voters.

	URL for this article: http://online.wsj.com/article/0,,SB10582275508842800,00.html

Updated July 15, 2003

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[Support Free Republic]

How about the new highway named for Clinton in his home stste of Arkansas? It's a little crooked, and has a long yellow streak down the center. Be careful if you drive on it, it's a little slick.

Manufacturers announced today that they will be stocking America's shelves this week with "Clinton Soup, to honor one of the nation's most distingushed men". It consists primariy of a weenie in hot water.

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[McGavin999]

Were the schools receiveing any funds? If they were, then the requirement was met. I seriously doubt if the constitution mentions a figure. It's for the school boards to figure out how to manage that money. Perhaps if they got rid of union dues, wages could be cut by that same amount and still fall within the budget.

[goldstategop]

Jim Gibbons should file for the U.S Senate and ask Sen. Reid if he thinks 70% of Nevada voters were wrong.

[Elle Bee]

Lame-Duck RINO Guinn aside for the moment, recalling a few of the activist judiciary might give them pause from further arrogating law from the bench.

Judges believe they live in a privledged class gifted with impuinty from all responsibility.... and they may well be correct

.... unless a few are brushed back soon

.

[Elle Bee]

That's likely the core theme of this essay / editorial

.

[goldstategop]

I'd like to see Guinn given the boot too. Fortunately he's term limited. But he can forget about aspirations for higher political office or ANY office in Nevada for that matter after he put the screw to the voters.

[McGavin999]

Well, somebody should send a copy of this article to the Supreme Court of California. I just read that the Union in California has requested that the SC of California step in to over-ride the state legislature and force a simple majority to be able to pass tax increases.....just like Nevada.

[Elle Bee]

and Florida .... and the Federal Supremes

a little Gray Davis-ing ... a recall or two directed at the bench might at least slow these eago-mainiacs down

.

[goldstategop]

Superintendent Of Education Jack O'Connell filed the suit. The reason Gray Davis didn't is it would enrage the voters even more. There is only so much you can do even for... the chirrun.

[McGavin999]

I agree. I think it's past time ALL these people figure out that the constitution spells out the limits to their power. I'm sick of a congress trying to usurp the powers of a president, a judiciary who is trying to usurp the powers of a legislature. At least we finally have a president who isn't EO crazy like the last one who was a president trying to usurp the powers of both the judiciary and the congress. Sheesh, don't these people read? Their job description is clearly spelled out in the constitution.

[McGavin999]

Thanks for the correction, it's 2:30 in the morning here and I should be asleep. Unfortuantely, I ate a bunch of brownies and now I'm on a sugar high :o)

[Coop]

Polling info about four paras down.

[eureka!]

Not a bad start. Be nice to put Nevada in play. The more the merrier--divide and conquer....

[Coop]

Oh, I think NV is definitely in play.

[Atlas Sneezed]

"I think it's past time ALL these people figure out that the constitution spells out the limits to their power."

Amen. THe judges need to learn that the Constitution limits all GOVERMENT power; it does not allow the transfer of unlimited power from legislatures to courts.

[FastCoyote]

Sig Rogich is a slime bucket along with the rest of the Las Vegas insiuder cabal. He should be hung out to dry along with Reid.