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Grassroots group urges legislature to reverse course on tax increases, tackle government spending
LINCOLN, NE – Americans for Prosperity-Nebraska (AFP-NE) today urged lawmakers to reject the Revenue Committee’s tax plan, which calls for a $500 million state sales and income tax increase, and support tax reform that does not include harmful tax increases.
Although this bill is intended to alleviate Nebraska’s high property tax burden, a tax shift is not the solution to addressing the underlying issue of our state’s high property taxes – increasing local spending. AFP-NE believes legislators must look for ways to reduce and restrict the growth in spending for local taxing entities to deliver meaningful property tax reform.
AFP-NE State Director Jessica Shelburn released the following statement:
“Robbing Peter to pay Paul is not how we should provide meaningful tax relief for Nebraskans. Raising income and sales taxes by $500 million hurts the least fortunate the most and does not address the root cause of our property tax issue – out-of-control local spending. Legislators should support responsible tax reform that promotes economic growth and opportunity, not tax increases that punishes low-income families. We urge the legislature to rein in spending rather than raise taxes.”
Read Jessica Shelburn’s op-ed on property tax reform here.
The sales tax increase would hit low-income communities the hardest, as they already spend a disproportionate amount of their income on sales taxes.
Additionally, studies have also shown sales tax increases prompt people to leave the state to make their purchases. With neighbors like Colorado, Missouri, South Dakota, and Wyoming already having lower state sales taxes than Nebraska, this proposed increase would make it even more likely that Nebraskans will choose to do their shopping out of state whenever possible, hurting our local businesses.
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