States should compete within America’s highly progressive tax and redistribution system
States should compete within America’s highly progressive tax and redistribution system
State and local governments are on the front lines of providing core government services. They are also on the front lines of competing for jobs and economic growth. Therefore, state fiscal policy should produce revenue for core government services by applying low, competitive tax rates to a broad tax base with limited exemptions. That is...
By Michael Lucci
Nebraska property tax relief in LB 243
Nebraska property tax relief in LB 243
Nebraska lawmakers have laid out an ambitious goal of achieving historic income tax and property tax relief in 2023. Income tax reforms in LB 754 would accomplish Nebraska’s most significant tax improvements in generations. In addition, lawmakers are advancing property tax relief in LB 243, sponsored by Senator Tom Briese, an amendment to which incorporates...
By Michael Lucci
Missouri House advances bill to cut its corporate tax in half
Missouri House advances bill to cut its corporate tax in half
North Carolina made state tax history in 2021 by passing a law to eliminate the state’s corporate income tax by the end of 2026. Although the Tarheel State will be the first to repeal its corporate income tax, it probably won’t be the last. In fact, Missouri is advancing a bill to slash its corporate...
By Michael Lucci
LB 754 keeps Nebraska’s income tax progressive
LB 754 keeps Nebraska’s income tax progressive
Nebraska has a progressive state income tax. This means that higher income earners pay a greater portion of their income in taxes than do lower income earners. If Nebraska lawmakers enact LB 754, a comprehensive income tax reform bill, the state will still have a progressive income tax. Nebraska’s top income tax rate of 6.64%...
By Michael Lucci
Summary and analysis of income tax reform in LB 754
Summary and analysis of income tax reform in LB 754
Nebraska’s Revenue Committee advanced an amendment to LB 754 out of committee on a 7-1 vote last week, bringing Gov. Pillen’s income tax reform plan to the full Unicameral for debate. The bill is a tour de force of income tax reforms. The individual and corporate income taxes are both overhauled by the bill, with...
By Michael Lucci
Mississippi advances full expensing through both chambers
Mississippi advances full expensing through both chambers
Mississippi lawmakers advanced legislation to enact full expensing this week, with separate bills passing in the legislature’s House and Senate. H.B. 1733 passed Mississippi’s House on an overwhelming 112-3 vote, while S.B. 3101 passed the Senate on a 51-0 vote. The bills both make full expensing the permanent tax treatment for qualifying investments in both...
By Michael Lucci
Priorities for the 108th Nebraska legislature
Priorities for the 108th Nebraska legislature
At the writing of this blog, the 108th Nebraska Legislature is entering the 7th week of its 90-day session. A massive 812 bills were introduced in the first 10 days of the new session, each receiving a public committee hearing before full-day floor debates begin. Striking this year is the attention the Governor and legislative...
By Jim Smith
Home equity theft kicks homeowners while they’re down
Home equity theft kicks homeowners while they’re down
A recent story about Geraldine Tyler in Reason went something like this: 94-year-old Tyler fell behind by $2300 on her property taxes. Interest and fees came to $15,000. The government foreclosed, sold the home for $40,000, and kept the remaining $25,000. Right or wrong, most of us know that government can seize property to collect...
By Laura Ebke
New corporate rate rankings highlight Nebraska’s pathway to a top 10 corporate tax code
New corporate rate rankings highlight Nebraska’s pathway to a top 10 corporate tax code
Nebraska levies the 18th-highest corporate income tax rate in the country in 2023, according to a new compilation of state corporate rates from Tax Foundation. The Cornhusker State’s top corporate rate was reduced from 7.5% to 7.25% on January 1st, making Nebraska’s top rate equal to New York’s at #18. Nebraska is one of...
By Michael Lucci
Nebraska, Wisconsin, aim towards flat taxes
Nebraska, Wisconsin, aim towards flat taxes
The state flat tax revolution marches on in 2023. Arizona, Idaho, and Mississippi each inaugurated a flat-rate income tax on January 1st, expanding the count of states that opt for a single-rate income tax structure. Massachusetts, on the other hand, moved in the other direction by abandoning its decades-long protection of a flat tax system....
By Michael Lucci
Key tax reform bill would cost Nebraska nothing
Key tax reform bill would cost Nebraska nothing
Nebraska’s Legislature will consider major tax reform proposals to slash income and property taxes in 2023. Historic revenue surpluses provide lawmakers a rare opportunity to dramatically cut income and property tax rates, improving the state’s friendliness for both families and firms. Yet one key tax reform can be enacted for “free.” LB 492, introduced by...
By Michael Lucci
New year, new tax reforms
New year, new tax reforms
Nebraska lawmakers begin 2023 in the midst of a wave of state tax cuts. Most importantly for local families and firms, Nebraska’s individual income tax rate dropped from 6.84% to 6.64% on January 1, and the corporate rate fell from 7.5% to 7.25%. Nebraskans should have more to cheer about in 2023, as influential lawmakers...
By Michael Lucci
Michael Lucci on the Future of Nebraska’s Tax Policy
Michael Lucci on the Future of Nebraska’s Tax Policy
Nebraska ranks 39th in the country for property tax competitiveness. How do we modernize our tax policy to keep and attract more people? Today, we’re talking about the future of Nebraska’s tax policy and how we compare to other states. Given the changes in the economy, states are competing to keep their current population and...
By Jim Vokal