A Balanced and Fair Tax System for Nebraska

Fourteen Nebraska lawmakers are about to embark on an important assignment. As members of the Tax Modernization Committee, they will be reviewing and debating the state tax code. Fortunately, the Center for Rural Affairs can offer some help.

We remind everyone of our 1992 report, A Balanced and Fair Tax System for Nebraskans. This report was commissioned by the CFRA Board of Directors. They created a task force to take a comprehensive look at Nebraska’s tax structure.
The task force’s report offered three broad goals:

  • Reduce the share of state and local revenue coming from property taxes.
  • Broaden the sales tax base and lower rates.
  • Make the overall tax system less regressive.

These goals echo 21 years after the report’s release. In fact, they all played a major role in the 2013 legislative debate on proposals by Governor Dave Heineman to eliminate the state income tax and numerous sales tax exemptions. That debate resulted in the creation of the Tax Modernization Committee, which will conduct the first comprehensive legislative review of Nebraska’s tax system since 1967.
The Tax Modernization Committee will hold hearings across the state and offer other opportunities for public participation during 2013. We will provide information how you can offer your ideas for a fair, competitive and stable state tax system.

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