Nebraska ranked worst for retired taxpayers
Nebraska recently got some not-so-good news. A Kiplinger analysis suggests that Nebraska is the #1 worst state for retirees from a tax standpoint.
Nebraska takes the cake as the least tax-friendly state for retirees, according to the analysis, which Mengle admits is likely to surprise people. “In Nebraska’s case, high income taxes and property taxes make it hard on retirees living there,” he says, adding that the state also taxes Social Security benefits for many of its retirees and does not offer an “exemption — like you see in many other states — for other types of retirement income,” among other tax-related issues.
This points to a big problem: Nebraska has high-income taxes, high property taxes, and already taxes sales. When we talk about tax relief without talking about real spending cuts, that tax relief is really just a shift in “who pays” or “how we pay it.” As long as spending continues to grow (even at a slower rate of growth), the state and local entities are still going need to come up with the revenue somehow.
Spending cuts won’t be easy, but they’re probably going to be necessary if we want to move to a better place on the “worst” list. And a real commitment to spending cuts will force legislators and the executive branch to prioritize what must be spent, and what could be done without. And that will make us all more free, because a government that’s forced to do less, will let us do more without barriers!