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%...
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...
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...
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...
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...
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...
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....
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...
As Nebraskans, we’re proud to say our state is the place for the Good Life. Over the years, Nebraska’s had its fair share of controversial mottoes and even license plates. But through it all, the concept of the “Good Life” has been considered about as good as it gets when it comes to capturing what...
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...
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...
What to do with Nebraska’s surging tax revenues is a problem every policymaker would like to face. Nebraska legislative leaders have already pointed to the best solution. Senator Lou Ann Linehan, who chairs the Revenue Committee, argued that the surplus revenue “has to go back to the taxpayer.” The best way to do that, Sen....
Nebraska’s income tax was created in the Nebraska Revenue Act of 1967 and has been applied to both individuals and corporations since its creation. The income tax was increased soon after it was created, and it evolved into a less competitive structure over its first few decades. Nebraska policymakers took steps to improve the competitiveness...
Nebraska was one of the last states to adopt a sales tax, allowing the Cornhusker State to benefit from the decades of sales tax experience in other states. Nebraska policymakers can once again fuse their knowledge from decades of sales tax experience with the principles of sound taxation to update Nebraska’s sales tax for the...