Two bills offered to overhaul Nebraska tax system
Gov. Dave Heineman has suggested that longstanding sales tax exemptions be eliminated in two bills that will be considered by senators to reform the state's tax structure.
The bolder bill would totally wipe out income and corporate taxes and eliminate $2.4 billion in sales tax exemptions. The other bill would would cut $395 million in sales tax exemptions and eliminate corporate income tax. It would exempt the first $12,000 of retirement income for married couples and $6,000 for single individuals.
Heineman says he is trying to frame the debate about a tax system that hasn't been changed for nearly fifty years.
School lunches,and food would not be touched in any of the proposals. One of the Governor's plans proposes eliminating sales tax exemptions for ag chemicals, ag machinery, and energy used in agriculture but the other proposal keeps the exemption for ag machinery.
Heineman's tax reform plans will be carried by Sens. Brad Ashford and Beau McCoy.
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