Legislative Testimony: LB939, Change individual income tax rates

My name is Nicole Fox and I’m testifying on LB939 in a neutral capacity on behalf of the Platte Institute.

While we applaud efforts to reduce income taxes, we are concerned that this bill does not provide the best means to reduce the tax burden on our workforce and improve Nebraska’s economic competitiveness.

In 2021, the Platte Institute became an alliance partner with Blueprint Nebraska and has worked in concert with Blueprint’s leadership to develop and promote a comprehensive framework for bold and sustainable tax modernization.

This plan was developed through gathering insights from Nebraskans and by conducting independent economic analysis on the impact the plan would have on our workforce and economic growth. Particularly, tax modernization should be deliberate in focusing on reforms that significantly increase our competitiveness with peer states, incentivize our recent graduates to remain in Nebraska, and encourage more people to migrate to our state and join our workforce.

Tax modernization, as opposed to piecemeal tax relief, is necessary to achieve these objectives. Changes to our tax system must be bold and sizable enough to generate economic growth and to sustain Nebraska’s other financial commitments, which includes property tax relief. For example, by strategically broadening our sales tax base and removing preferences from our tax code, we can produce new revenues to support significant and sustainable tax reform.

We believe these features of tax modernization are essential to the prosperity of our state and are best provided for in LB1264, the Blueprint Nebraska plan that will be heard in this committee in coming weeks.

With the state’s strong financial position, now is the time to boldly reform the state’s tax code and to rethink the underlying incentives of Nebraska’s tax structure. Tax modernization would make Nebraska a better place to earn a paycheck at any level, to own property or a business, and to retire.

Thank you.