The new tax would be applied to the purchase of new goods and services and would become effective in 2022 if the Legislature agrees to place the proposal on this November’s general election ballot and if voters approve the dramatic change.
Erdman proposes consumption tax to replace property, income tax
Senator Steve Erdman dropped a surprise in the hopper on the last day of bill introduction. And his surprise is designed to decrease the “shakedown effect” that many Nebraskans feel when it comes time to pay property and income taxes.
LB300CA–a proposal for a “Constitutional amendment to prohibit all forms of taxation other than a consumption tax” represented quite a surprise, according to Lincoln Journal Star reporter Don Walton’s latest story.
If the new tax system is enacted and implemented, Nebraska “will become the No. 1 place to do business (and) be the most sought-after state to live in,” Erdman said.“This is thinking outside the box on steroids,” he said.