Editorial

Choice of words provides insight into lawmakers' thinking

Thursday, August 18, 2016

Remember when President (Bill) Clinton tried to explain away his lies about Monica Lewinsky thusly: "It depends on what the meaning of the word 'is' is."

The same type of parsing reveals some insight into lawmakers' thinking when it comes to budget discussions.

"We need more transparency," Nebraska State Sen. Burke Harr said. "We need the ability to sit down and say, 'If we do this, how much is it going to cost?'"

Did you catch that?

Not "how much are taxpayers going to save," or "how much capital will go into investment rather than government operations," but "how much is it going to cost?"

It is true that tax structures should be adjusted to reflect economic changes -- the free-market, limited government Platte Institute commissioned a study that concluded Nebraska could benefit from expanding sales tax and reducing business tax credits.

That way, according to author Jard Walczak of the Tax Foundation, the state could avoid the budget crisis that Kansas has experienced since slashing personal income taxes in 2012 and 2013.

Farmers and ranchers, meanwhile, have seen property taxes cut into profits declining because of dropping commodity prices.

Harr argues that Nebraska's unemployment rate remains lower than neighboring Wyoming and South Dakota, even though those states have no income taxes. Income tax cuts could undermine the state's "investments" in K-12 schools and other state services -- that's code for "spending."

Budget issues extend to the local level as well, with McCook considering a 3-cent property tax raise to cover a $118,000 budget shortfall and Red Willow County asking voters for a 2-cent tax to support Hillcrest Nursing Home.

Critics contend the city has adequate reserves scattered among various budget items, and will have more than $600,000 freed up once city building bonds are paid off in 2018. They also put little faith in a statement that the city could reduce its levy once those bonds are paid off.

Others contend the county has adequate room under the state-imposed budget lid without going to the voters for more to support the nursing home.

How much government spending is necessary?

That depends on what your definition of "is" is.

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