News Release: Legislative Testimony on CARES Act Decoupling
NEWS RELEASE from the Platte Institute
Contact: Adam Weinberg
Legislative Testimony: AM3093
Amendment would decouple Nebraska from CARES Act tax policies
LINCOLN, NE – Today, the Platte Institute will testify in opposition to AM3093 to Legislative Bill 1074. If adopted, the amendment would decouple Nebraska’s state tax system from income tax relief policies passed by the federal government in response to the COVID-19 pandemic. Under current law, Nebraska’s state tax code conforms to most federal tax policy changes automatically.
Platte Institute Policy Director Sarah Curry will provide testimony on the amendment. AM3093 will be heard before the Revenue Committee in State Capitol room 1525 at 12:00 p.m. Central Time.
“The CARES Act is an emergency economic relief measure and its tax provisions are well-targeted to help those most impacted by COVID-19. If the state decouples, the more than 42,000 Nebraska employers who required federal relief because of the pandemic will be the very same taxpayers who end up paying higher income taxes to the state,” said Curry.
While the federal government’s tax policy changes will cost the state revenue in the coming years, the CARES Act has also provided additional relief funding for the state, including funds that may be allowed to be used to shore up losses to the state’s budget resulting from the pandemic and economic downturn.
“The Platte Institute has been leading a coalition to provide flexibility for the use of CARES Act funds to make up for lost revenues. I have good reason to believe this flexibility will be included in the new federal relief plan released today, which is expected to permit states to use CARES Act funds to replenish general revenues, including any losses from conformity,” said Curry.
Sarah Curry will be available for interview on this topic during and after the hearing. For more information, please contact Adam Weinberg at (402) 500-0209 or email@example.com.
The Platte Institute advances policies that remove barriers to growth and opportunity in Nebraska. More media resources are available at PlatteInstitute.org/Media.