From Nebraska Gov. Dave Heineman (R)’s speech this evening (PDF):
Three years ago, we passed the largest taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. relief package in the history of the State. We repealed the estate taxAn estate tax is imposed on the net value of an individual’s taxable estate, after any exclusions or credits, at the time of death. The tax is paid by the estate itself before assets are distributed to heirs. , eliminated the marriage penaltyA marriage penalty is when a household’s overall tax bill increases due to a couple marrying and filing taxes jointly. A marriage penalty typically occurs when two individuals with similar incomes marry; this is true for both high- and low-income couples. , repealed the sales taxA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. on construction labor, and lowered income taxes. Prior to those changes, the Tax Foundation ranked Nebraska as one of America’s Top 10 highest tax states. Their survey ranked Nebraska as having the 44th highest tax rates out of 50 states.
Today we have successfully reduced our ranking to 33rd, making Nebraska a more competitive and business-friendly state. That’s progress, but we have more to do. Taxes are still too high.
Read the State Business Tax Climate Index report here.
Neighboring Kansas Gov. Parkinson (D) also praised the Tax Foundation’s work in his State of the State address.
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