Fri February 14, 2014
Neb. lawmakers worried by proposed tax rate change
LINCOLN, Neb. (AP) — Even the lawmaker who introduced a bill seeking to lower Nebraska's income tax rates is acknowledging the proposal needs to be changed.
Senator Burke Harr of Omaha introduced the bill, which was heard Thursday by the Revenue Committee.
The bill would lower personal income and corporate tax rates gradually by 2017 and reduce the number of tax brackets from four to three.
Harr says the state is receiving more tax revenue than it is spending, and the bill would help make the state more competitive.
But Harr notes a recently completed fiscal study of the bill indicates it's not workable, as the state would lose $595 million in revenue in fiscal year 2017.
Other lawmakers expressed concern the bill would hurt funding for state programs.
The bill is LB1097.
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