State Tax Reform

[ita]

Recently, LLB 289 has garnered headlines in local news because it presents property tax reform in the guise of shifting the tax burden to sales tax and shifting some of the burden of funding public schools from home/real property owners to the state. What do you have think about it? Here is a recent article with some of the details:

https://www.omaha.com/news/legislature/ ... 167c3.html

1/2 cent sales tax increase, removal of exemptions on some food items, and taxing of certain services like auto repair and house painting. I think I will be generally positively affected. However, I was wondering what your positions are concerning tax reform? Obviously, this is a hot topic among Nebraskans, so I know you all have thoughts and concerns about this most recent and serious effort to reform taxes.

[ScrattyB]

A $570,000 home in the Elkhorn School District — which Linehan represents — would see an estimated $1,082 reduction in property taxes for local education, and would pay about $657 a year in increased sales taxes on things like extra cigarette taxes, veterinary bills and hiring a house painter. In Grand Island, a $383,000 home would get a $708 tax break while paying a projected $216 in additional sales taxes.

They just don't get it. I'm glad Ricketts is there to veto the tax shifting bills.
People with half million dollar homes do not need tax breaks. We need to promote more local business, which encourages growth and use the taxes gained from that.

[bigredmed1]

Agreed. Shifting the deck chairs on our budget is not the solution. Cutting spending by actually cutting stuff and by moving revenue generating programs off of the general fund is needed.

If Game and Parks can run the state parks on their current fees, then good. If they need 10% more, then raise fees and leave the general fund alone.

[iamjacobm]

As I understand it property tax relief isn't really being designed to help John Q Homeowner in Elkhorn. It is designed to shift burden off of ag land onto other sources like the sales tax increases.

Where I don't see this being terribly beneficial for "Nebraskans" is that ag land is increasingly being snatched up by large out of state or international entities. A lower property tax rate could induce an influx of outside ownership on the state's ag land that leaves more people working land they don't actually own. Not sure that is a healthy path for the state going forward.

This will certainly be championed as a move to help the little guy, but I would be curious to see how much less someone like Ted Turner will be paying into the state coffers on his 500,000+ acres and that burden is shifted to Nebraskans in forms of higher and broader sales taxation.

There probably isn't a perfect taxation rate for any of this, and Nebraska does have high property taxes. The thing is I don't see this really saving your normal family in any significant way, they will just be paying more at the register to cover what they save on their house.

[ita]

Agreed. Shifting the deck chairs on our budget is not the solution. Cutting spending by actually cutting stuff and by moving revenue generating programs off of the general fund is needed.

If Game and Parks can run the state parks on their current fees, then good. If they need 10% more, then raise fees and leave the general fund alone.

Concerning cutting costs, I know we all don't know where every single penny goes, but how does the State do that? I was thinking we should reconsider county lines. Why are there so many? I think I read somewhere that they were originally drawn up on the hypothesis that it shouldn't take more than one day on a horse to get across the county, or something like that. We could reduce the amount of administration and consolidate resources, particularly in the sparsely populated west.

If we can't or it's difficult to cut costs, the other option is to increase revenue. I like your idea concerning moving revenue generating programs off the general fund. Additionally, the State can promote other methods of diversification of resources the state can produce and provide, ie. wind/solar energy. Allowing industrialized hemp should end up generating more tax revenue. I think the push to increase Nebraska's tourism industry is important because more visitors means more people spending money here increasing sales/revenue tax revenue business income taxes. I actually didn't mind the aspect of removing exemptions of some of the food items because a lot of that stuff travelers/trucker will buy while driving through. That's tax revenue that we are missing out on.

[Brad]

I was thinking we should reconsider county lines. Why are there so many? I think I read somewhere that they were originally drawn up on the hypothesis that it shouldn't take more than one day on a horse to get across the county, or something like that. We could reduce the amount of administration and consolidate resources, particularly in the sparsely populated west.

There have been a couple previous proposals discussed in this thread:
http://www.eomahaforums.com/viewtopic.php?f=4&t=3343

One had 44 counties and the other had 20 counties. Unfortunately it looks like the map with the 20 counties is gone now.

[ita]

I was thinking we should reconsider county lines. Why are there so many? I think I read somewhere that they were originally drawn up on the hypothesis that it shouldn't take more than one day on a horse to get across the county, or something like that. We could reduce the amount of administration and consolidate resources, particularly in the sparsely populated west.

There have been a couple previous proposals discussed in this thread:
http://www.eomahaforums.com/viewtopic.php?f=4&t=3343

One had 44 counties and the other had 20 counties. Unfortunately it looks like the map with the 20 counties is gone now.

Thanks for the link Brad. There really needs to be a concerted effort by the State to look into this issue. I agree with some of the comments in that thread that the metro counties shouldn't be safe from consolidation. I know it sounds like the slash and burn tactics UP uses when searching for profits for their shareholders, but I think there is an obvious administrative glut when it comes to how the state's counties are structured.

[bigredmed1]

There are several state programs that could be cut free of general fund money. The licensing office at the board of health and the newborn screening program are two in the NE DHHS. Both have revenue and this could be adjusted to cover their operations. While neither is big, these two could lead the way for others and eventually we could start actually get the general fund under control.


The prisons and roads aren’t going away, but NU needs to come under control. There are a lot of programs that either don’t need to exist or could be revenue neutral towards the general fund.

[Omababe]

"Tax Reform" Translated: Somebody gets a break, and somebody else gets the shaft.

[ita]

The senators that introduced the original property tax reform deal submitted a modified plan, omitting the changes of how state funds were distributed and making it a strict tax shifting plan, where exclusions for candy, soda, and home services are terminated.

https://www.omaha.com/news/legislature/ ... 9f3d0.html

In other tax news the bill that would cut taxes on veteran retirement benefits (only 50% would be taxable) got the votes it needed. I believe Iowa exempts veteran retirement benefits 100%, so it makes us a little more competitive.

[ita]

Looks like even this modified plan for property tax relief is dead in the water. Additionally, there is push back of the revised business incentive plan known as the ImagiNE Act. There is a strong divide between the interests of rural and urban Nebraska, which, I know is not news but, inhibits much of what can get done by the legislature. Interestingly enough the hemp bill is slowly making its way through the rounds. Maybe that will bring relief to some farms as an alternative crop since soy and corn has been hit hard by tariffs.

https://www.omaha.com/news/legislature/ ... 39e9d.html

[bigredmed1]

"Tax Reform" Translated: Somebody gets a break, and somebody else gets the shaft.

Yep. We need budget reform. Some things just need cutting. Some things can't generate revenue (at all) and thus need general fund support. Somethings can generate revenue and others can generate profit. We need to look at moving those off budget of the general fund. Roads, prisons, medicaid, schools all are basically going to be albatrosses around the general fund's neck. Game and Parks, the University, Newborn screening are all examples of things that generate revenue and in the case of NU, potentially generate profit. These can all be set to pay their own way. Lets be efficient and consider that Med School is 6 years in KC, Europe, Canada, and most everywhere else. Taking two years off the tuition means big savings for the students and less cost to the state. Same with law school. Drop the cost for both sides. Why in heavens sake do we really need three independent teachers colleges in the NU system? Same with business schools. We have one nursing school that teaches all over the state. Are we really going to say that these other colleges are incapable of doing that as well?

[daveoma]

Looks like even this modified plan for property tax relief is dead in the water. Additionally, there is push back of the revised business incentive plan known as the ImagiNE Act. There is a strong divide between the interests of rural and urban Nebraska, which, I know is not news but, inhibits much of what can get done by the legislature. Interestingly enough the hemp bill is slowly making its way through the rounds. Maybe that will bring relief to some farms as an alternative crop since soy and corn has been hit hard by tariffs.

https://www.omaha.com/news/legislature/ ... 39e9d.html

I wonder if the property tax cut disproportionately benefits large landowners who are already wealthy rather than lower income or middle class farmers.

[ita]

New proposals for tax relief: cut agricultural land valuations from 75 to 55% of the market value. I did not know farmland was already being valued at less than market whereas residential is valued at 100% market value. This is going to be another failed proposal for sure as this further divides representatives of urban and rural areas of the state.

http://netnebraska.org/article/news/119 ... skepticism

[bigredmed1]

New proposals for tax relief: cut agricultural land valuations from 75 to 55% of the market value. I did not know farmland was already being valued at less than market whereas residential is valued at 100% market value. This is going to be another failed proposal for sure as this further divides representatives of urban and rural areas of the state.

http://netnebraska.org/article/news/119 ... skepticism

Sounds right. None of the Omaha senators will vote for this and the rural media will scream blue murder. The Omaha haters will have another pelt. Property tax relief only comes from organic change in the way the state is managed. There are a whole list of governors (GOP and Dem) who need to be spanked hard for blocking efforts to reform how things are supported.

We have been trying since the late 1990s to get the Newborn Screening Program to run on its own income. EVERY Governor has blocked it because it "looks like a tax increase". By taking this off budget, we get a small program to act as a budgetary test bed and then as we master self funding, we aim for the big dogs, the Game and Parks Commission and the University. Take these off General Fund, and we get sustainable property tax relief because our need for the property tax goes down.

[GrandpaaSmucker]

The economy is doing really bad and that is why everything is FUBAR as far as the State budget and the Federal Budget are concerned. At the heart of all this is the economy stinks and has stunk since the end of the 90's. All we hear is how good things are going with the economy from the politicians. It is all a big lie. If the economy is doing so well then how come 70% of the kids going to school tomorrow in the Omaha public Schools will be on the free lunch program. 70% of the parents of kids in the Omaha School district do not even have 2 or 3 bucks to give to their kid for lunch. 70% of the parents in the Omaha School District make so little they qualify for government handouts. That is a lot of people that are poor mostly collecting handouts not paying taxes ......And who is going to make up for all those lost taxes the corporations and the scamming businessmen all getting tax breaks and tiffs? Prison overcrowding and prison riots and nursing homes closing. This won't end good I would imagine.

[bigredmed1]

The school lunch statistic is largely due to social separation. When ReLo agents take their clients to the border of Millard North HS and say “from here to the west” and when we have large chunks of the city that can’t take advantage of gentrification because the schools suck and with two income families, the effect of lots of house vs wives diving into the PTA and the school board meetings and pushing investment is not present. Add in the issue of immigrants, single mother households, ganged up families and a lack of emphasis on academics means your kids can’t just go to school to learn. They have to fight their way through the crowd of noise just to get the teacher to help them with a math question. So, if you are well to do, do you stay in midtown when your kid hits kindergarten or do you move to west Omaha?

[bigredmed1]

The school lunch statistic is largely due to social separation. When ReLo agents take their clients to the border of Millard North HS and say “from here to the west” and when we have large chunks of the city that can’t take advantage of gentrification because the schools suck and with two income families, the effect of lots of house wives diving into the PTA and the school board meetings and pushing investment is not present. Add in the issue of immigrants, single mother households, ganged up families and a lack of emphasis on academics means your kids can’t just go to school to learn. They have to fight their way through the crowd of noise just to get the teacher to help them with a math question. So, if you are well to do, do you stay in midtown when your kid hits kindergarten or do you move to west Omaha?

[Omahacritic]

Correlating kids on Lunch Program to economy is faulty reasoning.

[ita]

Blueprint Nebraska seeks income tax cuts, other tax reforms, to boost economy

Paul Hammel
LINCOLN — A statewide economic-development initiative, launched by Nebraska business and higher education leaders, is calling for cuts in state individual income taxes and corporate income taxes among several steps to help boost the state's population and economy.

Blueprint Nebraska, at a press conference Tuesday, projected that 66,000 new jobs and 73,000 additional residents would be added over a decade by cutting income taxes, increasing investment in research and development of businesses, and helping high-skilled and highly sought new employees pay off student loan debt.

Its plan would offset the income tax cuts by eliminating sales tax exemptions on several services. New taxes would be imposed on auto repairs, plumbing and roofing services, legal and accounting bills, as well as haircuts and tickets to sporting events and concerts.

Groceries would remain tax-exempt, but 20% of the exemption on doctors' bills would be removed, and 40% of the tax exemption on medical equipment would be eliminated.

Among highlights of the proposal:

-- Individual income taxes would be eliminated for those with yearly incomes of $50,000 or less ($100,000 for a married couple), and income taxes for those with higher earnings would decrease gradually over 10 years to 4.99%. That would be down from the current 6.84%, which is among the highest among neighboring states. Itemized deductions would be eliminated under the plan.

-- Corporate income taxes would decline from the current 5.58% for those corporations earning $100,000 or less a year, and 7.81% for companies with higher incomes, to 4% and (eventually) 4.99%, respectively for those two tax brackets.

-- The state's sales tax base would be broadened by taxing more services, with at least some medical services to be taxed.

-- State tax credits for investments in research and business development would double.

-- Student college loan relief for highly skilled workers would be offered at up to $12,000 over five years. Manufacturing workers would get loan relief of up to $1,200 over five years. Both efforts are projected to attract more workers to Nebraska, addressing a critical shortage of workforce.

-- The state's inheritance tax would be eliminated. That, it's projected, would retain an additional 10% of the state's retirees.

-- Increased collection of sales tax revenue would create additional funds — about $2 billion over the next decade — for "strategic" property tax relief.

[buildomaha]

Yikes, another regressive tax proposal coming from the wealthiest people in the state:/
I would love to see a groundbreaking idea, like eliminating income taxes up to $1,000,000 annual income. Or something of the sort. Sure, tax everyday goods, but find a way to lessen the burden on the working class.

[ita]

Yikes, another regressive tax proposal coming from the wealthiest people in the state:/
I would love to see a groundbreaking idea, like eliminating income taxes up to $1,000,000 annual income. Or something of the sort. Sure, tax everyday goods, but find a way to lessen the burden on the working class.

There is quite a bit in the proposal from Blueprint Nebraska. The ideas presented would result in eliminating income tax for single residents making $50k and less and married $100k and less. We're you looking for broader tax release for higher earners? I think if we went this route including single earners up to $75k and married taxpayers up to $125-35k would be more worth it as it would help attract "skilled", "tech" workers or "professionals."

I am surprised that no one ever suggests increasing excise tax on tobacco/cigarettes. My brief research on the issue indicated that we have have some of the lowest taxes on cigarettes. Seems like the state could either rake in the money increasing taxes for those goods and/or disincentivize smoking/tobacco usage by increasing the taxes substantially. I know it probably doesn't much of a difference but if we are revamping our tax system, might as well consider everything.

[buildomaha]

Yikes, another regressive tax proposal coming from the wealthiest people in the state:/
I would love to see a groundbreaking idea, like eliminating income taxes up to $1,000,000 annual income. Or something of the sort. Sure, tax everyday goods, but find a way to lessen the burden on the working class.

There is quite a bit in the proposal from Blueprint Nebraska. The ideas presented would result in eliminating income tax for single residents making $50k and less and married $100k and less. We're you looking for broader tax release for higher earners? I think if we went this route including single earners up to $75k and married taxpayers up to $125-35k would be more worth it as it would help attract "skilled", "tech" workers or "professionals."

I am surprised that no one ever suggests increasing excise tax on tobacco/cigarettes. My brief research on the issue indicated that we have have some of the lowest taxes on cigarettes. Seems like the state could either rake in the money increasing taxes for those goods and/or disincentivize smoking/tobacco usage by increasing the taxes substantially. I know it probably doesn't much of a difference but if we are revamping our tax system, might as well consider everything.

I guess I didn’t read deeply enough into the plan to see that!

I was thinking along the lines of sticker value that not having income tax has had in sun belt states. A $1,000,000 annual income cutoff is probably a bit high for an affordable state like Nebraska.

[ita]

BLUEPRINT NEBRASKA’S TAX MODERNIZATION PLAN EXPLAINED

Jim Vokal
Blueprint Nebraska, a campaign dedicated to increasing Nebraska’s economic growth and competitiveness over the next decade, has released its proposed framework for bringing Nebraska’s tax system into the 21st century.

Blueprint Nebraska’s Taxation & Incentives Industry Council took insights from surveys, public forums, and tax policy research to develop a plan that gives Nebraska a regionally-competitive tax climate that is more inviting to workforce talent.

The headline benefits for Nebraskans include allowing taxpayers to earn up to $50,000 free of state income tax, dedicating an additional $2 billion to property tax relief over the next ten years, and an elimination of Nebraska’s inheritance tax. This is in addition to new student loan relief programs and a doubling of Research and Development investments.

Many states we compete with for people and investment—red and blue—have no state income tax, or at least a lower income and property tax, and very few states have inheritance taxes.

But these bold changes wouldn’t be remotely financially possible without bringing in alternate revenues. Blueprint Nebraska proposes to pay for tax modernization through a major overhaul of current sales tax exemptions, the elimination of itemized deductions for state income taxes, and by ending most corporate tax credits.

Here's a paywall free article outlining the tax reforms recommended by Blueprint. Please keep in mind that Platte Institute generally leans a certain way politically, so their support for certain reforms include broadening the tax base through consumption tax. Anyway, they do a decent job explaining some of the primary changes and included a link to an independent analysis of how the suggested changes can impact the state budget. Here's the link to that analysis: https://blueprint-nebraska.org/wp-conte ... -Codes.pdf

[buildomaha]

I believe I saw Carol Blood published an opinion piece about the tax plan. I don’t remember where I saw that.

[ita]

I believe I saw Carol Blood published an opinion piece about the tax plan. I don’t remember where I saw that.

Found it: https://omaha.com/opinion/columnists/mi ... a3828.html

I get the arguments against some of the elimination of tax exemptions and tax cuts for high income earners and businesses. I don't understand that when these types of cuts are suggested why opponents also argue that mostly old, white, rich dudes are going to benefit. They really don't have to play that card when there are viable arguments to be had. There are all types of people that will benefit from income tax cuts; doesn't she know there are business owners and/or wealthy people that aren't old, white guys that would welcome these income tax cuts?

Also, the argument that 18-34 year olds don't really care about taxes? That's hogwash, especially when they buy property (or even considering) and look at their property tax bill, or talk to their friends from other states that don't have state income tax. It is not a non-factor for people in that age range. Young people are savvy about those types of things and it absolutely becomes a factor when these young people choose to stay or move to Nebraska.

I think the income tax cuts are to stay competitive, it all comes down to how you fund them. Arguably, taxing more services can hurt lower income individuals and families, but I ran some rough numbers and you would have to spend like 50% of your income on goods and services for your tax burden under the suggested Blueprint tax regime to be equal to your current burden if you are in the lower tax brackets. If your AGI is under $50k/100k, you will definitely get an overall tax cut. So, sure white, old, wealthy people will benefit, but so will a lot of non-white, non-old, non-wealthy people.

What we could do is lower individual and family costs that would be taxed under a more expansive tax regime. For example, car services/repairs would be taxed under Blueprint's suggestions. To help low income families out, the State and Local municipalities could provide better funding to transit and active commuting infrastructure and stop trying to widen highways and roads. Promote and fund infill development and affordable housing in the urban cores to take advantage of existing infrastructure and improved multi-modal transportation.

I don't think the tax suggestions work to benefit everyone in a vacuum, I agree with her on that. Other considerations are required to if these types of tax changes are made.

[bigredmed1]

The thing that cutting loopholes and overall tax rates have been shown to do is to increase net income from income taxes thus allowing property taxes to go down.

Property tax relief should go only to actual ranchers and farmers living on their property and not giant multinational corps.

[S.O.Boy]

Property tax relief should go only to actual ranchers and farmers living on their property and not giant multinational corps.

Most of them are on paper millionaires

[bigredmed1]

Property tax relief should go only to actual ranchers and farmers living on their property and not giant multinational corps.

Most of them are on paper millionaires

Bill Gates and other rich people own a surprisingly large amount of Neb. Small family operations support towns and schools. Gates’ family likely couldn’t find Cherry County on a map. Why give him a tax break?

[ita]

Nebraska could eliminate taxes on Social Security benefits even sooner

Martha Stoddard
LINCOLN — Nebraska retirees would no longer have to pay state income taxes on Social Security benefits by 2025 under a bill introduced Thursday in the State Legislature.

Legislative Bill 825, filed by State Sen. Brett Lindstrom of Omaha, would phase out the tax twice as fast as a bill passed last year.

That previous bill would reach a 50% exemption in five annual steps, with the intention of hitting 100% by 2030. The new proposal would reach the 100% level in four steps.

The measure is a key part of the tax-cutting measures that Gov. Pete Ricketts and State Sen. Lou Ann Linehan of Elkhorn, the Revenue Committee chairwoman, said should be a legislative priority this year. The two spoke at a press conference Thursday.

[ita]

Five takeaways from Gov. Pete Ricketts' spending proposals

Sara Gentzler
Nebraska Gov. Pete Ricketts presented numerous spending priorities during his final State of the State address on Thursday.

Here are five key highlights:

Tax relief. The governor proposes dropping the top individual income tax rate and corporate tax rate to 5.84% over five years. He wants to accelerate the phase-in of the elimination of state taxes on Social Security benefits over five years instead of 10. And he also proposed ensuring that property tax relief provided through income tax credits stays at least at its current level of $548 million annually.

[ita]

https://www.wowt.com/2022/01/13/nebrask ... t-earners/

Nebraska Gov. Pete Ricketts is proposing an income tax cut for corporations and nearly 419,000 residents whose incomes rise into the state’s top bracket.

The Republican governor said he would seek to lower the top rates to 5.84%, down from the current 6.84% for individuals and 7.25% for corporations that will go into effect next year.

The plan would reduce state tax collections by $178.8 million by fiscal year 2025. Like many other states, Nebraska is flush with cash from a better-than-expected pandemic economy and billions in federal stimulus payments that went to most Nebraska taxpayers.

Rather than sending the refunds for property taxes, could the state just eliminate individual state income tax altogether? A one percent decrease to top bracket and 1.5% cut to corporate taxes results in $178.8 million reduction in revenue over 2 years, it seems like we could get close to eliminate all state income taxes if we don't pay out property tax refunds, which is a miniscule tax cut for the average homeowner.

Nevermind I found a graph of state revenue. https://revenue.nebraska.gov/research/g ... d-receipts

Looks like about $3 billion come from personal income tax, a little over half of the yearly revenue. In any case, I would rather have the $1 billion in property tax relief to go to reducing state income tax rates. I own property and state income tax deductions would be more impactful on a wider swath of Nebraskans.

[ita]

70% OF NEBRASKANS SAY TAX AND WORKFORCE ISSUES ARE LINKED

Is tax reform a tired trope in Nebraska politics, or do Nebraskans really consider the state’s tax system out of step with their economic concerns?

A new Platte Institute poll shows most Nebraska voters do think tax policy is part of the reason the state struggles to compete and grow its workforce, and there’s broad agreement Nebraska would be more appealing to job seekers if the state offered lower taxes on the paychecks workers earn.

Importantly, this view is shared among most Nebraska Republican, Democratic, and independent voters and voters of all ages.

These results below are part of a scientific telephone survey of 812 voters in Nebraska, conducted in December 2021. The margin of error is 3.44%. It’s also important to know that in polling, totals may not always equal 100% when the percentage for each group of responses is rounded to the nearest figure.

Previously, we’ve discussed what this same group of voters thought about Nebraska’s county inheritance tax. On this portion of the survey, we asked voters if they saw a relationship between tax policy and Nebraska’s challenges retaining and attracting workers, businesses, and retirees.
...
In Lincoln, it’s often stated as an article of faith that Nebraskans only see the need for changes to property taxes, or that Democratic voters, or younger voters don’t think tax changes are a priority for making the state a better place to have a career.

These respondents contradicted each of those assumptions.

Respondents see the connection between tax reform as a possible solution to workforce issues. Furthermore, there was resounding agreement that eliminating income taxes for income earners making $50k or less would help workforce issues. There are lots of circle graphs illustrating that this position is popular across politic lines, age, etc.

[Louie]

70% OF NEBRASKANS SAY TAX AND WORKFORCE ISSUES ARE LINKED

Is tax reform a tired trope in Nebraska politics, or do Nebraskans really consider the state’s tax system out of step with their economic concerns?

A new Platte Institute poll shows most Nebraska voters do think tax policy is part of the reason the state struggles to compete and grow its workforce, and there’s broad agreement Nebraska would be more appealing to job seekers if the state offered lower taxes on the paychecks workers earn.

Importantly, this view is shared among most Nebraska Republican, Democratic, and independent voters and voters of all ages.

These results below are part of a scientific telephone survey of 812 voters in Nebraska, conducted in December 2021. The margin of error is 3.44%. It’s also important to know that in polling, totals may not always equal 100% when the percentage for each group of responses is rounded to the nearest figure.

Previously, we’ve discussed what this same group of voters thought about Nebraska’s county inheritance tax. On this portion of the survey, we asked voters if they saw a relationship between tax policy and Nebraska’s challenges retaining and attracting workers, businesses, and retirees.
...
In Lincoln, it’s often stated as an article of faith that Nebraskans only see the need for changes to property taxes, or that Democratic voters, or younger voters don’t think tax changes are a priority for making the state a better place to have a career.

These respondents contradicted each of those assumptions.

Respondents see the connection between tax reform as a possible solution to workforce issues. Furthermore, there was resounding agreement that eliminating income taxes for income earners making $50k or less would help workforce issues. There are lots of circle graphs illustrating that this position is popular across politic lines, age, etc.

This isn't shocking that the Platte Institute came to such a conclusion. Pete Ricketts founded it.

[ita]

70% OF NEBRASKANS SAY TAX AND WORKFORCE ISSUES ARE LINKED

Is tax reform a tired trope in Nebraska politics, or do Nebraskans really consider the state’s tax system out of step with their economic concerns?

A new Platte Institute poll shows most Nebraska voters do think tax policy is part of the reason the state struggles to compete and grow its workforce, and there’s broad agreement Nebraska would be more appealing to job seekers if the state offered lower taxes on the paychecks workers earn.

Importantly, this view is shared among most Nebraska Republican, Democratic, and independent voters and voters of all ages.

These results below are part of a scientific telephone survey of 812 voters in Nebraska, conducted in December 2021. The margin of error is 3.44%. It’s also important to know that in polling, totals may not always equal 100% when the percentage for each group of responses is rounded to the nearest figure.

Previously, we’ve discussed what this same group of voters thought about Nebraska’s county inheritance tax. On this portion of the survey, we asked voters if they saw a relationship between tax policy and Nebraska’s challenges retaining and attracting workers, businesses, and retirees.
...
In Lincoln, it’s often stated as an article of faith that Nebraskans only see the need for changes to property taxes, or that Democratic voters, or younger voters don’t think tax changes are a priority for making the state a better place to have a career.

These respondents contradicted each of those assumptions.

Respondents see the connection between tax reform as a possible solution to workforce issues. Furthermore, there was resounding agreement that eliminating income taxes for income earners making $50k or less would help workforce issues. There are lots of circle graphs illustrating that this position is popular across politic lines, age, etc.

This isn't shocking that the Platte Institute came to such a conclusion. Pete Ricketts founded it.

That may be the case, but the Platte Institute regularly supports tax reform that Ricketts is adamantly against because 'tax shifting.' They have been at the forefront of consumption tax proposals, among others. Ricketts hates that. He would rather cut spending than increase taxes on sales/use, unless he talks one thing and secretly supports another (that may be the case, I don't know the guy).

[bigredmed1]

Consumption taxes are just sales tax. We already have one and we see people drive over to CB to save money because of it. Especially before the start of the school year.

Cutting spending becomes harder as a lot of the spending is institutional and we either start shedding blood (cutting UNL’s trough) or we just move the deck chairs.

Property taxes are a thorny issues in rural Neb due to the taxes applied to land based on acreage and not profitability(a6 acre cow calf unit is taxed the same per acre as a 10 acre cow calf unit.).

We can’t get meaningful income tax reform without dealing with a couple of years worth of farmers bitching.

[ita]

Consumption taxes are just sales tax. We already have one and we see people drive over to CB to save money because of it. Especially before the start of the school year.

Cutting spending becomes harder as a lot of the spending is institutional and we either start shedding blood (cutting UNL’s trough) or we just move the deck chairs.

Property taxes are a thorny issues in rural Neb due to the taxes applied to land based on acreage and not profitability(a6 acre cow calf unit is taxed the same per acre as a 10 acre cow calf unit.).

We can’t get meaningful income tax reform without dealing with a couple of years worth of farmers bitching.

As proposed, the consumption tax would broaden the sales tax to more services. I get it that people drive to CB, sometimes, for back to school shopping, but for a lot of Omahans a 2%, or even 5%, difference wouldn't be made back in gas (and time). I don't know all the factors in getting real tax reform, but I really believe property tax relief is a red herring. Eliminating individual tax income (at least for moderate and low income earners) should come before property tax relief as it affects a broader base of Nebraska with the potential to help the workforce shortage.

[bigredmed1]

Definitely agree that income tax reform should come first. Be prepared for the fight.

[ita]

Definitely agree that income tax reform should come first. Be prepared for the fight.

I would hope that with a little explanation most people would understand. Unfortunately, I tried contacting my state rep and Senator Linehan who has been heading the tax reform efforts in the Unicameral, and have not heard back yet. It's only been a few days, but I am not hopeful. I feel like the politicians are pushing property tax reform down our throats when that issue is so muddled because those fund city and county costs. Just stick to the income tax issue and I think something could be done. Let's see what the state can cut by just using the $1 billion property tax relief fund for income tax relief.

[ita]

Ricketts, business spokesmen urge state income tax rate reduction

Don Walton
Nebraska's comparatively high state income tax rate currently is an incentive for families to leave the state, the governor said.

An income tax reduction bill (LB939), introduced by Sen. Lou Ann Linehan of Elkhorn, is awaiting first-stage floor consideration in the Legislature, with a number of proposed amendments pending.

The proposal would incrementally reduce the top income tax rate for individuals from 6.84% to 5.84%, providing parity with the top corporate income tax rate.

The impact on state government revenue would rise incrementally from an initial reduction of $62 million in fiscal 2022-23 to $363 million in fiscal 2026-27, according to estimates.