Last week, the Tax Foundation released a paper titled, “Reexamining the Tax Exemption of Municipal Bond Interest,” which argued that lawmakers should consider reforming the current tax treatment of municipal bond...
- The Tax Policy Blog
- Nebraska Legislators Approve Inflation Indexing But Drop ...
Nebraska Legislators Approve Inflation Indexing But Drop Major Tax Overhaul
Nebraska legislators are on track to approve a bill to inflation-adjust individual income tax brackets each year, a positive change that ends "bracket creep" and will save taxpayers $10 million per year. However, efforts to adopt a more comprehensive tax overhaul appear to have stalled until the 2015 legislative session.
The sponsor of the bill, State Sen. Burke Harr of Omaha, and a representative of one of the business groups pushing for income tax cuts said the fight was over until next year.[...]
Kearney Sen. Galen Hadley, chairman of the Legislature's Revenue Committee who headed up a tax “modernization” study last year, said lawmakers signaled that they had hit their limit for tax changes this year.[...]
As originally proposed, LB 1097 would have cut state income tax rates for individuals and corporations over three years. But with its cost — an estimated $645 million a year — it was panned during a public hearing as a budget buster that would harm K-12 and higher education.
Even Harr, the sponsor, said the original bill was unaffordable. Tuesday, the senator said he had attempted to find more affordable alternatives but was unsuccessful.
Hadley said the Revenue Committee will probably study income taxes again this summer. Harr said that income and property taxes are too high and that Nebraska needs to reduce them to remain competitive.
Get Email Updates from the Tax Foundation
Join the Tax Foundation's fight for sound tax policy Go
About the Tax Policy Blog
The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.
Recent Blog Posts
Related State Articles
- Lunch Links: South Dakota Internet Tax Court Filings; Time for Nebraska Tax Reform; Sales Tax Holidays Coming Up
- Lunch Links: Corporate Tax Rates by Company; Louisiana Considers Gas Tax Increase; Debating the Muni Bond Exemption
- Lunch Links: 44 Percent Pay No Federal Income Tax; California Property Taxes Grow Fast; New Jersey Gas Tax Standoff Continues
- 1 of 13
- next ›