Nebraska welcome sign by Peter Zillman is licensed under CC BY 2.0
Americans for Tax Reform commends Nebraska Governor Jim Pillen, Senator Lou Ann Linehan, and their fellow Nebraska Republicans for their commitment to further income tax relief by reducing the flat tax rate to 3.9%, which will give Nebraskans more breathing room to spend the money they earned as they see fit.
“Our current tax system fails to make Nebraska competitive,” said Governor Pillen. “If we are going to attract and retain people, we need to modernize our tax code and provide Nebraskans with the tax relief they need. My proposals will reduce our property, income, and business taxes to spur economic growth so Nebraska can remain, for future generations, the best place in the country to work and raise a family.”
Senator Linehan, who introduced the bill in Nebraska’s unicameral Senate, said “When fully phased in it will be another $720,548,000 in new tax relief. If enacted today, it would put Nebraska in the top 15 of lowest income tax states. Nebraska is currently 29 for personal and 32nd for corporate.”
“I am excited to see the results of Nebraska’s tax cuts and I know that all Nebraskans will be very thankful to have more money in their pockets instead of the government’s,” said Grover Norquist, President of Americans for Tax Reform. “Nebraska lawmakers have repeatedly proven themselves to be committed fighters for their constituents against big government overreach. I applaud the efforts of Governor Pillen, Senator Linehan, and Nebraska Republicans who continue the fight for a less burdensome tax code and a smaller, more responsible government.”
Numerous states are using revenue surpluses to eliminate their income taxes to promote economic growth and gain a competitive advantage. Many other states with income taxes are flattening and reducing them.
Nebraska is seeing increased competition from states across the country, including its neighbor Iowa, that are improving their tax climates. Reforms enacted over the past year have sparked many Americans to move to low or no tax states, with Arizona, Florida, Texas, and others seeing huge population booms, while high-tax New York and California saw massive decreases. These efforts will make Nebraska a much more attractive destination for those looking to flee oppressive tax and regulatory climates and will provide an economic boost to the Cornhusker State.