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Nevada
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The Honorable Jim Gibbons

Quality Business
and Quality of Life

Editors’ Note

A Sparks, Nevada native, Jim Gibbons served five terms representing Nevada’s 2nd District in the U.S. House of Representatives before resigning to assume the governorship of Nevada in January 2007. During his tenure in Congress, he served on several key subcommittees dealing with national intelligence, homeland security, the military, and natural resources as well as serving on several Congressional caucuses. Within a month of the 9/11 attacks, Gibbons had authored and introduced bipartisan legislation that became the basis for the Homeland Security Act, which created the Department of Homeland Security. Prior to that, he spent three terms in the Nevada State Legislature where, after being named Outstanding Freshman Legislator during his first year in 1988, he ultimately rose to the position of Republican Whip of the State Assembly. A former combat pilot and veteran of both the Vietnam and Persian Gulf wars, Gibbons served in the U.S. Air Force from 1967 to 1971, and then joined the Air Guard in 1975, attaining the rank of Colonel and serving as the group’s Vice Commander from 1990 through 1996. During his military service, he received 19 service medals and was also awarded the Distinguished Flying Cross for extraordinary achievement as an RF-4C Flight Leader in the Gulf War. A graduate with a BS in geology from the University of Nevada, Reno, he obtained his master’s degree in mining/geology from the University of Nevada’s Mackay School of Mines and then earned his JD from Southwestern University School of Law before completing his postgraduate work at the University of Southern California.

“Nevada,” you often say, “is so much more than an entertainment state.” What is important for our readers to know about your state that perhaps they don’t know?

Nevada is the only U.S. destination that offers both 24-hour entertainment and outdoor adventures statewide. One can enjoy fine dining, shopping, entertainment, and luxury resort hotels and also experience the thrill of Nevada’s impressive natural beauty and seemingly unending landscapes made for adventure recreation, all in the same day.

Our state is not only a great place to visit; it is also a great place to live and work. The quality of life in Nevada has attracted people from all across the country, and the continued growth has brought a number of new and diverse businesses into the state to serve the needs of our residents.

As one of the fastest growing states in the nation, we face a number of unique challenges in terms of resource management, planning, infrastructure requirements, and the like. However, with these challenges come unique opportunities that business and industry in Nevada have been able to take advantage of, to the benefit of our communities.

As Nevada is enjoying one of the best growth economies in the U.S., you’ve said that it’s important to “keep the confidence” among investors in your state strong. What factors do you deem most important in maintaining investors’ confidence in Nevada?

To maintain investor confidence, the business climate must allow for free market options and competition. This can be achieved through limited and fair taxation, which allows Nevada businesses to reinvest in the economy. This reinvestment ultimately stimulates growth and creates new jobs within the state.

Additionally, we are working expeditiously to address the challenges caused by the slowdown in the housing market through our website http://foreclosurehelp.nv.gov/, through the 2-1-1 help line, and through statewide housing fairs that will provide on-site foreclosure assistance for borrowers.

“Low taxes and regulations, and controlling government spending,” you’ve said, “is in tune with the people of Nevada, and creates an economic climate that allows them to be successful.” Could you elaborate, please?

Limited government regulations coupled with a low-tax structure allows businesses to expand and operate in a competitive climate. Government has a responsibility to provide services to the people of the state in an efficient and effective manner. Government should not be profiting through tax and spend policies, but rather by maintaining a responsible and balanced tax structure. Like any business or family, government must control spending in order to live within its means. To do otherwise would be irresponsible.

Your administration has been very active in assisting new start-up companies. What advantages do start-up companies have in Nevada that they may not have in other states?

Nevada has one of the most business-friendly tax climates in the nation. Outstanding benefits, such as no corporate income tax, no personal income tax, no franchise tax on income, no unitary tax, and low sales and property taxes allow new and growing businesses to keep and reinvest more of their hard-earned dollars. This also allows businesses to provide greater benefits and higher pay for their employees, which in turn allows businesses to attract new talent to the state.

For new businesses, no minimum initial capital is required and annual filing fees are nominal. In addition, there are limited reporting and disclosure requirements.

Prior to your election as Governor, you spearheaded two successful ballot initiatives – the Gibbons Tax Restraint Initiative, and the Education First Initiative – that were overwhelmingly supported by Nevada voters. In what ways have these Initiatives fundamentally impacted your state?

The Education First Initiative requires the state’s education budget to be funded first and foremost, prior to the funding of any other state budget item. This ensures that education remains everyone’s highest priority and prevents it from being used as a bargaining tool throughout the legislative process. Its effectiveness was proven during the past 2007 legislative session.

The Gibbons Tax Restraint Initiative requires a two-thirds supermajority to enact new or increased taxes. Through this process, we ensure that taxes remain fair and stable.