Governor Unveils Two Proposals to Eliminate Income Taxes
LINCOLN (AP) - Nebraska Gov. Dave Heineman has unveiled two proposed tax reform measures that would eliminate or reduce state income taxes. The larger plan unveiled Friday would eliminate the state's income tax on corporations and individuals, while getting rid of $2.4 billion in sales tax breaks that Nebraska currently allows. Among the exemptions identified for elimination are those for some business inputs, manufacturing machinery, medical equipment and medicine, prescription drugs, ag machinery and chemicals. Previously exempt organizations like churches may also be affected. The second bill would eliminate corporate income taxes and provide an exemption for retirement income. Married couples would receive an exemption for the first $12,000 they earn, while single filers would see a $6,000 exemption. That proposal would end $395 million in exemptions. Many exemptions targeted in one bill are preserved in the other. Heineman says he wants a public conversation about which specific exemptions to cut.
