Proposals to cut Nebraska’s top personal income tax rate and corporate income tax won broad support Thursday from business interests, as well as stiff opposition, saying the plans bill would disproportionately help the wealthy while cutting state government revenue.
Senator Lou Ann Linehan of Elkhorn, sponsor of the corporate tax cut plan contained in LB938, said the cuts would attract businesses and talent to Nebraska, helping meet the challenge posed by its current shortage. of labor and opening the door to growth in the state.
Linehan is chair of the legislature’s revenue committee, which held a public hearing on the bills.
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Bryan Slone of Omaha, president of the Nebraska Chamber of Commerce and Industry, said the bills could be a “game changer” for the state, addressing the challenge of a “whole new economy with a structure different workforce” as the nation emerges. of the COVID-19 pandemic.
It will be “a new competitive environment,” he told the committee.
Currently, Slone said, there are about 80,000 open jobs in the state.
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Craig Beck, senior financial analyst for the Open Sky Policy Institute, said the plan would “disproportionately benefit the highest-paid Nebraskans” by significantly reducing their taxes while cutting state revenue by $400 million per year. year to year and leaving state government programs “vulnerable to major budget cuts.”
The average tax cut for most Nebraskans under LB939 would be $62.75 a year, compared to more than $8,900 a year for the top 1%, he said.
About 84% of the personal income tax cuts would go to the top 20% of Nebraskanians, he said.
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Linehan’s LB938 would follow an earlier legislator-approved corporate tax cut plan to reduce the rate from 7.81% to 7.25% in 2023 by adding additional new cuts that would bring it to 5, 84% in 2026.
Linehan said the reduced rate will “attract more business” while allowing taxpayers to “keep their own money.”
Representatives from the Nebraska Federation of Independent Business, Nebraska Bankers Association, Lincoln Independent Business Association and Americans for Prosperity supported the proposal.
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The benefits of the corporate tax cut would primarily accrue to wealthy nonresidents, Beck said, resulting in “reduced revenue for services to Nebraskans.”
Only $9 million of the $53 million in corporate income tax cuts would remain in Nebraska when the bill is fully implemented, he said.
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Journal Star’s Best Photos for January
Journal Star’s Best Photos for January
Update
Nebraska’s Isabelle Bourne heads for the basket against Michigan on January 4, 2022. Photo by Jeremy Buss for the Journal Star.
Journal Star’s Best Photos for January
Update
Senator Tom Brewer reads legislation on the first day of the legislative session Wednesday, January 5, 2022, on the floor of the Legislative Assembly. GWYNETH ROBERTS, newspaper star
Journal Star’s Best Photos for January
Update
Salmon risotto is on the menu at Ollie & Hobbes, 2940 Pine Lake Road. GWYNETH ROBERTS, newspaper star
Journal Star’s Best Photos for January
Update
A squirrel finds a snack on a cold day at Holmes Lake on Thursday, Jan. 6, 2022. GWYNETH ROBERTS, Journal Star
Journal Star’s Best Photos for January
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The remains of a building at Vogt Construction, 11811 Roca Road, Convent on Thursday January 6, 2022. GWYNETH ROBERTS, Journal Star
Journal Star’s Best Photos for January
Update
Waverly’s Preston Harms (3) shoots at the Norris defense during a game Thursday, Jan. 6, 2022 at Waverly High School. GWYNETH ROBERTS, newspaper star
Journal Star’s Best Photos for January
Update
Anna Clarke (15) of Waverly shields the ball as Gracie Kircher (25) of Norris tries to steal Thursday, Jan. 6, 2022 at Waverly High School. GWYNETH ROBERTS, newspaper star
Journal Star’s Best Photos for January
Update
Nebraska Game and Parks mascot Kit the Raccoon watches as Kathryn Romine celebrates winning the grand prize of the Your Parks Adventure Contest trailer Friday, Jan. 7, 2022, at Mahoney State Park. GWYNETH ROBERTS, newspaper star
Journal Star’s Best Photos for January
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Lincoln Southwest junior Daniel Turner will deliver a monologue from the movie ‘Just Mercy’ at the annual Martin Luther King, Jr. Youth Rally and March. Newspaper star GWYNETH ROBERTS
Journal Star’s Best Photos for January
Update
Nebraska takes on Iowa’s Sharon Goodman for a loose ball against Iowa on Sunday January 10, 2022. Photo by Jeremy Buss for the Lincoln Journal Star.
Journal Star’s Best Photos for January
Update
Lincoln’s Aria Ferreira, 5, plays in a sea of bubbles during Make Believe Midnight at the Lincoln Children’s Museum on Friday, Dec. 31, 2021. Instead of featuring balloon drops, the museum switched to using bubbles this year to celebrate New Year’s Eve. JUSTIN WAN, Journal Star
Journal Star’s Best Photos for January
Update
Kelsey Slauson (L) and Terry Twaddell, co-owners of Zen Llama, work in the disc golf store Tuesday, Jan. 4, 2022, in the College View neighborhood. GWYNETH ROBERTS, newspaper star