AFP Defeats Attempt to Introduce the Largest Tax Hike in Nebraska’s History

Feb 4, 2025 by AFP

In 2024, while Americans were facing rising unemployment and record-high costs due to year-over-year inflation increases, lawmakers attempted to impose a tax hike that would have made Nebraska’s sales tax rate the highest in the entire country.  

Early in 2024, Governor Jim Pillen introduced a tax package that would raise the state sales tax by 2%. For residents, this would mean yet another hit to their hard-earned money when they purchase basic necessities for their family. The proposed increase would have also been the largest sales tax increase in the history of the state.  

Americans for Prosperity (AFP) was the first to publicly oppose the misleading tax hike, leading the charge to build a coalition and launch an impressive grassroots campaign that engaged thousands of voters to hold their lawmakers accountable and prevent the tax hike from passing.  

Nebraska Lawmakers Push Deceptive Tax Bill on Nebraska Residents 

If the tax hike passed, the prices of everyday necessities would rise, a financial blow to thousands of hardworking families already struggling with historically high inflation. This disastrous policy would’ve hit low-income families and those living on a fixed income the hardest.    

The tax hike would have impacted businesses—even those you do not expect.  Veterinarians like Larry Henning, whose services are not subject to sales taxes, would have to raise prices as his supplies became more expensive, passing the prices on to consumers. 

“We all feel the weight of inflation at the grocery store, at the gas pump, and in small businesses like mine, and Lincoln politicians are making it worse,” emphasizes Larry. 

With prices going through the roof, residents are already forced to make difficult financial choices. A steep sales tax hike would exacerbate the affordability crisis.  

AFP Empowers Residents to Say NO to Sales Tax Increases  

AFP wasted no time mobilizing their resources and starting a grassroots campaign to make residents aware of the deceptive tax hike and provide a platform for them to get involved. Volunteers spent weeks educating taxpayers about the repercussions of the policy, motivating thousands of people to call their lawmakers and urge them to vote against the increase. To support their grassroots efforts, AFP spearheaded a coalition of groups that would bear the brunt of a sales tax increase, including the Nebraska Chamber of Commerce, small businesses across the state, and dedicated activists. 

Lawmakers, facing mounting pressure from their constituents and businesses in their districts, reconsidered their stance on the issue. 

By the summer of 2024, the persistent efforts of AFP and its coalition members culminated in a resounding victory as they successfully defeated the tax package. Thanks to AFP’s grassroots tactics informing and mobilizing communities, Nebraska residents were empowered to take charge and hold public officials accountable to their constituents.  

The victorious outcome is a testament to the power of amplifying community voices and working with a diverse set of coalition partners to defend residents from deceptive attempts to take their hard-earned money.  

Team up with AFP today to block policies that make everyday life more expensive! 

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