Nebraska’s competitive sales tax and historic 2023 income tax reform must be protected
Nebraska’s competitive sales tax and historic 2023 income tax reform must be protected
As Platte Institute wrote in National Review last year, Nebraska achieved the best tax reform in the country in 2023, delivering long-overdue income tax reform and dramatically enhancing the state’s competitiveness. It was the type of achievement that lawmakers wait a whole career to accomplish. The 2023 income tax reform will phase in over several...
By Michael Lucci
96% of Nebraska income losses go to lower tax states
96% of Nebraska income losses go to lower tax states
Capital flows to where it is most welcome. A state’s tax burden is one factor that contributes to how welcoming a state is to new flows of capital. This lesson should always be on the mind of state lawmakers as they adjust their state tax code each year. While reforming the tax code is important,...
By Michael Lucci
School Choice is Essential, And Nebraska’s Tax Credit Is About as Freeing as It Gets
School Choice is Essential, And Nebraska’s Tax Credit Is About as Freeing as It Gets
Educational freedom – often reduced to “school choice” – is expanding nationwide, and Nebraska joined in last year with passage of the Opportunity Scholarship Act. This occurred, perhaps not coincidentally, as school districts and states all over the country were being racked by culture war. The need for freedom in education – self-determination that ends...
By Neal McCluskey
Property tax relief should focus on cutting school levies
Property tax relief should focus on cutting school levies
Governor Jim Pillen seeks to cut Nebraska property taxes by 40% through a tax package that includes raising new state tax revenues in order to fund local property tax cuts. Gov. Pillen seeks $2 billion in new property tax relief balanced against $5.3 billion in total property taxes. In Platte Institute’s assessment of the options...
By Michael Lucci
The unintended consequences of cigarette tax increases
The unintended consequences of cigarette tax increases
Sin taxes are levied on products that are believed to have a societal cost. And tobacco products are a frequent target for sin taxes. Yet ironically, high cigarette taxes create their own societal costs because they result in illicit interstate smuggling and criminal behavior. A pack of cigarettes in Chicago includes a whopping $7.16 in...
By Michael Lucci
Consumer Power: The Rising Demand for Repairable Electronics
Consumer Power: The Rising Demand for Repairable Electronics
As the 2024 session passes the one-third complete mark, it’s worth reflecting on one issue that isn’t on the table this year: the right to repair consumer technology. Although Nebraska was in the national spotlight when it debated the credibility of such a policy a few years ago, it will not be on the table...
By Lance Pounds
Federalism Rankings
Federalism Rankings
Two months ago, we made note of the Cato Institute’s Freedom ranking, which places Nebraska towards the bottom (at 38th) of the 50-state analysis of freedom components. A new ranking system—a “Federalism Scorecard” has just been released by the Center for Practical Federalism, and Nebraska’s ranking on that index is even lower—at 43rd. This latest...
By Laura Ebke
Keep prices low and businesses competitive by avoiding taxation on business purchases
Keep prices low and businesses competitive by avoiding taxation on business purchases
A well-structured retail sales tax raises revenue with minimal distortion to economic decision-making. While the income tax creates a disincentivize to work, save, and invest, the sales tax does not create these disincentives. Therefore, the retail sales tax raises revenue with comparably less economic cost than income taxes. Nebraska’s retail sales tax ranks #9 for...
By Michael Lucci
Governor Pillen’s Property Tax Plans: Options and Tradeoffs
Governor Pillen’s Property Tax Plans: Options and Tradeoffs
Governor Pillen has pitched a sequel to his historic 2023 income tax cuts. The 2023 reforms slashed top income tax rates by a third, and for his 2024 follow-up, Pillen has proposed cutting property taxes by 40% across Nebraska. When lawmakers convened in Lincoln in the spring of 2023, they had surpluses on hand for...
By Michael Lucci
Governor Jim Pillen’s Tax Triumphs and the Future of Tax Reform
Governor Jim Pillen’s Tax Triumphs and the Future of Tax Reform
Governor Jim Pillen inherited a historic opportunity for tax reform in Nebraska. Revenues surged during the pandemic recovery, creating unprecedented surpluses for the Cornhusker State. Nebraska leaders had maintained years of disciplined spending, setting the table for Pillen’s plan. Gov. Pillen was the man for the moment in 2023, and he delivered a transformational tax...
By Michael Lucci