The new tax would be applied to the purchase of new goods and services and would become effective in 2022 if the Legislature agrees to place the proposal on this November’s general election ballot and if voters approve the dramatic change.
Erdman proposes consumption tax to replace property, income tax
Erdman proposes consumption tax to replace property, income tax
Senator Steve Erdman dropped a surprise in the hopper on the last day of bill introduction. And his surprise is designed to decrease the “shakedown effect” that many Nebraskans feel when it comes time to pay property and income taxes.
LB300CA–a proposal for a “Constitutional amendment to prohibit all forms of taxation other than a consumption tax” represented quite a surprise, according to Lincoln Journal Star reporter Don Walton’s latest story.
If the new tax system is enacted and implemented, Nebraska “will become the No. 1 place to do business (and) be the most sought-after state to live in,” Erdman said.
“This is thinking outside the box on steroids,” he said.
This proposal for a constitutional amendment via the legislature would require two-thirds of the legislature (or 30 votes) to send it to the ballot for a vote of citizens. A simple majority of voters would cause this to become part of the state constitution, effective January 1, 2022.
This appears to be the state version of what is sometimes called the FAIR Tax plan. No property taxes. No income taxes. Sounds intriguing, huh?
Watch the hearings (not yet scheduled) and assorted coverage. I don’t know if this can get the votes, but it is MAJOR tax reform, and I commend Senator Erdman (and his 9 politically diverse colleagues) for throwing that out on the table for consideration.