Tax Reform Can Boost Nebraska’s Future
AFP-NE fights to provide path for real, long-term tax relief
LINCOLN, NE – Americans for Prosperity-Nebraska (AFP-NE) today announced its support of LB1212, a bill that would give taxpayers more say in how and whether local government entities can raise and spend more taxpayer dollars. AFP-NE is also supporting the framework of LB1213, legislation that attempts to make Nebraska’s tax code more pro-growth.
Americans for Prosperity-Nebraska State Director Jessica Shelburn released the following statement:
“Nebraskans have waited too long for our tax code to provide real, long-term tax relief. Senator Hansen’s bill, LB1213, has the right framework in place to increase opportunity for every Nebraskan by broadening the base, lowering the rate, eliminating the inheritance tax, and adjusting our school funding formula. We’re excited to work with Senator Hansen to improve the bill, so we can lessen the tax burden and provide real, long-term tax relief that Nebraskans need and deserve.”
Background:
AFP-NE identified tax reform as the group’s main policy priority for this legislative session.
LB 1213 makes several changes to the tax code:
- The sales tax is reduced from 5.5 percent to 5 percent and is expanded onto services. It is important to ensure that the sales tax rate is low and broad with as few exemptions as possible. However, some business-to-business transactions are included. It’s important to not tax business inputs to prevent tax pyramiding or double taxation.
- Income tax brackets are each reduced .20 percentage points. It is a larger percentage tax decrease for the lower brackets than the upper brackets. The new rates range from 2.26 percent to 6.64 percent. While we applaud an income tax decrease, ideally there would only be one low flat tax rate for all incomes.
- Legislative Bill 1213 also eliminates the inheritance tax.
