How Long Can a Flawed Financial System be Sustained by Taxpayers?

Written by Michael Kadenacy, Chairman -Washoe County Republican Party

When I lived in France, the best economist that I met was my barber.  He had a small shop with a couple of employees that was similar to many small businesses here in the United States.  He summed up the fundamental flaw in Progressive economics like this.  “In France, one-third of the population was on benefit; one-third of the population was on the public payroll, which left the last third to pay for the other two thirds.”  He understood that this flawed system could not exist for long without leading to financial ruin.

To apply that logic to personal growth we know when you and your family hit financial difficulties, common sense and good personal fiscal management dictates that you tighten your belt and reduce your spending.  Not so for our State Government led by our progressive Governor, who, while leading the state into financial ruin with onerous COVID-19 restrictions, ensured State Civil Service members’ salaries were protected by deeming them “essential.” State workers did not suffer the same unemployment concerns as their fellow “non-essential” Nevadans.  Ironically, it is the “non-essential” workers who are responsible for making sure these “essential” employees are paid.

When we look at the economic condition of our state today, we see the progressives in Nevada have increased spending by all local and state governments, and now must find new ways to extract tax revenue from the already strapped citizens. Unfortunately, real financial planning is not a strong suit of progressives. So, when they increased the costs of state and local government substantially by allowing unionization of state workers and adopting the “prevailing wage” standard for public contracting, they did so without having a clear idea as to how they were going to pay for those extra cost.

Their first broadside to increase taxes was to go after the mining industry, which employs 12,000 people in Nevada, most of which come from rural communities.  The Nevada State Constitution protects this crucial part of Nevada’s economic life and tax status. The progressives in our legislature just passed a 300% tax increase on our mining industry and in the process have changed our State Constitution without the approval of its citizens. And, it isn’t just taxes for the present. They want the mines to pay estimated taxes for future years.  With these unreasonable and burdensome taxes mines will close as they are deemed no longer commercially viable. Jobs will be lost.

This is a prime example of piecemeal tax policy with no real planning used by progressives.  Their mindset is, we are spending more than we are taking in, who can we tax?  It should be noted that any tax, even for businesses, eventually is borne by you and me.  Companies might cut the check for the taxes, but those taxes are passed along to every one of us – through an increase in their prices.

Progressives will never be satisfied with the revenue stream and will, in the future, look for more ways to increase your tax burden, and government will continue to grow while your paycheck and personal freedoms shrink.  You can look forward to a state income tax, an increase in sales taxes, and increased fees and rates of existing taxes.

This is your future in Nevada if progressives are allowed to keep control of our State Legislature.  For limited government and low tax Republicans, the way forward is not only definite but urgent.  We must change the makeup of our state legislature by replacing those progressives in those bodies.

The Washoe County Republican Party has as its primary goal to do just that.


You Can Help Stop the Progressives from Taking Over Our State

Written by Michael Kadenacy, Chairman

The passage of AB 4 in the second special session of our State Legislature should leave no doubt in anyone’s mind where the Progressives are taking Nevada. The road inevitably leads to a one-party state, leading to dysfunctional governments at best and an authoritarian oligarchy at worst.

We have all seen where that leads in cities and states across this America.  Budgets entirely out of control, taxes high and going higher, business micro-regulated, higher unemployment, and violence in the streets.  These dysfunctional cities and states share one thing in common, the Progressives are in charge and have been for years and, in some cases, decades.

But, we as Republicans share some of the blame.  We have stood by and allowed our state, over three election cycles, to be hijacked by these Progressives.  Republicans as a functioning, cohesive, and politically active coalition does not exist in Nevada.  We have Balkanized ourselves into factions that spend what little effort we choose to exert to either virtue signal on social media or to seek to exclude someone or some group which may not conform to our particular set of conservative values.  Almost all of the virtue signaling posts do not persuade anyone of anything, merely highlight the righteousness of its author.  Neither of these activities has nor will elect Republicans.  If we are to reverse this slide into chaos, we must find common cause with people that may not agree on every position we tenaciously hold as sacrosanct.  Our failure to do so will relegate us to a righteous but permanent minority in Nevada.

But neither will the never-ending stream of appeals for contributions, elect Republicans.  These solicitors of our donations do not miss any action by Progressives to ask for money.  There are always multiple mail pieces and emails stating that the only way to stop whatever is the latest outrage by the left, is to send money.  I cannot help but note that not one of these solicitations ever really tells you how the solicitor intends to spend the money.  “if you want to stop this, send money.”  Be assured; it won’t.

Republicans need to pay attention to how these groups soliciting funds spend their money.

Likewise, Nevada Republicans need also to prioritize their effort.  Most of us are volunteers, and some have the financial capacity to support political action.  Both are required, but we need to decide where to target our effort.

If the Nevada Legislature’s two special sessions are harbingers of things to come, we can only ameliorate the scourge of Progressivism that is about to hit Nevada. To do this, we must focus on the several Assembly races that are in play and support any vulnerable Republican State Senators.

The Washoe County Republican Party’s critical efforts in this cycle are to do just that.  While our funds are limited, because we use our resources wisely, the County Party gets a lot of bang for the buck.  Our programs include a paid Intern program which is fielding 16 young people.  These Interns are phone banking and walking already.  We will be mailing two Slate Mailers to arrive a few days before early voting and sponsoring Get Out The Vote radio commercials.  We do not hire high-cost people to supervise our effort; volunteers do that work.  We reserve our spending for the Intern Program and mailers, both of which have a direct impact on voter turn-out.  And we are laser aimed at those races that will start the process of retaking the State Legislature by Republicans.

Republicans of all stripes must look at their efforts and decide whether those efforts effectively get Republicans elected.  That includes volunteer or financial support for Candidates, Political Parties, or PAC’s.  I urge you to consider whether what you are doing will lead to the election of Republicans, not merely the right Republicans.  Only then, do we have a chance to reverse the course set for our state by the two special sessions of our State Legislature.

Washoe County Chairman Thanks Assembly Caucus For Taking A Stand Against New Taxes

Eric Roberts, Executive Director 702-479-8615
July 10, 2020

Assembly Republican Leader Dr. Robin Titus’ Statement on Nevada’s 31st Special Session

Carson City, NV – Since the start of Nevada’s 31st Special Session, Assembly Republicans have sought to work with Democrats on commonsense solutions to get our economy back on track. From preventing painful cuts to Medicaid and education to finding additional savings, Assembly Republicans have been ready to mitigate the impact of the shutdown on critical areas in our state.

“Our state, economy, and citizens are facing challenging times,” said Assembly Republican Leader Robin Titus. “We need to keep Nevada safe, open and back to work so our economy can get moving again to avoid economic devastation. That is why it is so important for us to address our fiscal challenges in a responsible manner without raising taxes that will compound the problem for already struggling businesses and Nevada families.

Through shared responsibility, we can save our economy and create jobs for Nevadans. As we move forward, we will continue to deliver on our promise to restore Nevada to greatness.”


Is Nevada the Next California?

Written by Michael Kadenacy, WCRP Chairman

The Democrats have only one answer to any problem, whether it’s real or only in their fantasies, more government at more expense and paid for by your taxes.

Our Governor seems to be enthralled by the policies of California as evidenced by his many consultations with their Governor.  How has that worked out for California?  The high tax burden is driving businesses out of the state and deteriorating cities with few services, dirty, discarded needles, higher crime, and much more on their streets, is leading to an exodus of what was left of the middle class.  Most of California is left with the mega rich and the very poor who serve them.  This is not a stable society nor one that fosters sustained growth and opportunity for its citizens.

Can it happen in Nevada? One thing is certain. If Nevada continues down the path of ever-increasing taxes, regulation and profligate spending, we its citizens, can look forward to being California and in a very short time.

As you contemplate your election choices, consider where these tax and regulatory decisions will be made – in the Nevada State Legislature.  You can be sure that the Nevada Democrats already have a wish list and on top of that list will be a litany of new and increased taxes.  They have already drafted a bill for a 2% increase in the Sales Tax which would make Nevada the state with the highest Sales Tax in the country!  Look for increases in the thresholds and rates in the Commerce Tax, which are easy to slide by without taxpayers noticing.  And look for the start of the drive to change the Nevada Constitution to allow for a State Income Tax.

You can be sure that some of these tax measures will be taken up in the Special Session using the budget deficits caused by Covid-19 as their reasoning.  Do not be fooled, the tax increases were coming anyway.  And as for the deficits, has anyone heard of any cuts to government programs?  It seems your job or business is, in Democrat minds, non-essential, government jobs, always essential.

These tax decisions will be made in Nevada’s State Legislature and that is why it is critical that Nevadans make the right decisions in voting for their State Legislators.  Which candidates will vote to tax and spend more and more if they are elected?  Which ones will vote to increase the tax burden on hard working Nevadans?

We should not be fooled by the justifications for the ever-increasing spending and taxation, it’s for the children, or for the poor, or for whatever.  No matter what is spent, when the program fails, the solution is never to look at that program itself, it is always more bureaucrats and bigger budgets to do exactly that same thing.  Their excuse for failure is always, we did not spend enough.

For Nevada, the party that controls the State Legislature has never been more critical.  The way forward is clear, if you would prefer that Nevada not become California, then do not vote like a Californian.

Be Afraid!

Lurking under the skin of many Progressive Politicians is an authoritarian who believes that since he or she knows best what is good for everybody, everybody must be brought to obedience by whatever methods deemed necessary.

It is disturbing in America to hear and see the rhetoric which not only urges people to obey “orders” from political leadership but castigates those who may disagree with the underlying facts or solutions as somehow wanting people to die.  We see political leadership encouraging snitching on one’s neighbors.

Even some Conservative voices, while disputing a particular solution or fact, seem to accept that the Politician’s exercise of power is justified.  The modifications to the policy proposed are usually only around the edges.

But where is the outrage that Governors are acting without regard to the U. S Constitution and the God-given rights enshrined in that document?  And this is not hyperbole. One Governor explicitly stated that he did not feel constrained by our Constitution. Is there a loophole that states that if the emergency is great enough, and, that would be determined by the Governor himself, the Constitution no longer applies?    We have seen that you can get an abortion but cannot go to church.  We have seen that you can stand in line for Walmart but not to vote.  You can shop for your favorite beer, but Gun Shops are closed by edict.  You are put under the equivalent of House Arrest and confined to your home while violent offenders are released from prison.  One Mayor stated that if anyone was caught arranging a meeting with their family over social media, jail time was appropriate.   There are Drones over some cities watching citizens.  Governors and Mayors have created the equivalent of penal statues complete with penalties without any law being passed by a legislature.  And most state legislatures are silent and voice not a whimper of dissent.  This is the antithesis of a nation of laws, not men.

“But this is an emergency that calls for such responses,” they say.  Really, and if the next “next” emergency is only slightly less clear, say, climate change, and who gets to decide whether this triggers that same loophole. Or that there is “overpopulation”, or some other problem which can only be solved by massive government intervention in your lives.

And to those on the other side of the political spectrum and feel comforted that most of the draconian measures being used seem to be driving policies with which you agree, once the arbitrary power has been ceded to the government, it will be difficult, at best, to bring it back to the people.  And then when the policies and tactics of that government are turned on you, you will find that you destroyed your only protection, your Constitutional form of government.

Think that an authoritarian regime cannot happen in the United States?  Look around, it is happening.  And now.

Be afraid, be very afraid.

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