Nebraskans weigh in on historic tax cuts during hearing

LINCOLN, Neb. — Major tax cuts - backed by the Governor Jim Pillen – were up for a hearing in the Nebraska Legislature’s Revenue Committee on Thursday.

State Senator Lou Ann Linehan defended her bill against concerns about revenue loss from Sen. George Dungan.

"With the $1 billion going to the Education Fund and with all the tax cuts proposed in the governor's budget and these packages we're still going to have over $2 billion between the rainy-day fund, the minimum reserve and what's left for the floor," said Linehan.

LB 754 would gradually lower the top tier tax rate for individuals and corporations earning more than $100,000 to 3.99% by 2027.

GOVERNOR, STATE SENATORS ANNOUNCE "HISTORIC" TAX RELIEF PROPOSALS

Speakers representing the Nebraska Farm Bureau, Platte Institute, Greater Omaha Chamber of Commerce, Nebraska State Chamber of Commerce, Blueprint Nebraska, Lincoln Chamber of Commerce, Nebraska Bankers Association, National Federation of Independent Businesses and Americans for Prosperity testified in favor of the bill on Thursday.

“The fact that we can be sitting here in Nebraska talking about substantial, substantial tax cuts and reform in Nebraska is really exciting,” said Mark McHargue.

Proponents say Nebraska’s high tax rate is impacting progress and the state’s ability to retain workers.

Rebecca Firestone, executive director for Open Sky Policy Institute, spoke in opposition.

“Speeding up the existing cuts or taking the cuts down even further would largely benefit the wealthy,” said Firestone.

The Revenue Committee also heard public testimony on bills that would speed up already-passed cuts. LB 804 and LB 806 would begin an income rate of 5.84% this year.