Nebraska senators are targeting tax reform on the final day of the bill’s introduction in the chamber. A package of bills aims to cut real estate bills by 40%. It is one of the governor’s priorities. But unlike Jim Palin’s plan, which originally would have raised the sales tax by two cents, the bill introduced by State Sen. Lou Ann Linehan would only raise the sales tax by up to one percent. “I hope we don’t need to increase the sales tax, but I’ve convinced myself if we do figure out a way to cut the amount of property tax you get on your statement by 40%. “I don’t think people are going to be that concerned about a $0.01 increase in sales tax,” Linehan said. A 40% reduction would be $2 billion. Linehan said half of that could come from existing property tax breaks that lawmakers have already approved. “If there was a way to fill out your income tax refund in advance, you wouldn’t have to pay taxes in the first place,” Linehan said. Another proposal places strict limits on all local governments that can only be overridden by voters. “Last year, we tried, well, with the soft school cover. 72% of them went over it, and it’s barely a cover,” Linehan said. Linehan said billions more in property tax breaks could come from revenue growth, expanding gambling revenues and broadening the tax base by eliminating some sales tax exemptions. Although things like food, medical bills, and car repairs will not be taxed. “We’ve been very careful not to tax things that people consider essential to people’s livelihoods,” Linehan said. And it’s still not working for senators like Gene Raybould. “I don’t care how you spin it or call it something else. It’s raising taxes on working families in Nebraska. That’s wrong,” Raybould said. Raybould, who has served on the Lincoln City Council and Lancaster County Council, said she is concerned the strict cap could jeopardize funding for essential services. “We’re sorry. We don’t have the funding available this year, so you’re going to have to make up the shortfall,” Raybould said. 70% opposed any increase in sales tax. “This is not tax reform. It’s just a tax increase,” Gage said. He agreed that property taxes are too high. “You have some of the worst property taxes in the country. But this problem, the only way to fix it is to reduce government spending,” Gage said. Linehan said the only way to achieve reform is through tax transformation. “There’s a little bit of a risk here. They’re introducing bills that they probably don’t fully support and don’t really like,” Linehan said. “A 40% reduction in property taxes paid is a pretty big award,” he said. Nebraskans may get a better picture of the governor’s tax plan at a state address scheduled for Thursday at 10 a.m. Click here to get the latest headlines from KETV NewsWatch 7
Nebraska senators are targeting tax reform on the final day of the bill’s introduction in the chamber.
A package of bills looks to cut property bills by 40%.
It’s one of the governor’s priorities.
But unlike Jim Palin’s plan, which originally would have raised sales taxes by two cents, state Sen. Lou Ann Linehan’s bill would only raise the sales tax by up to one percent.
“I hope we don’t need to increase the sales tax, but I’ve convinced myself if we figure out a way to reduce the amount of the property tax statement that you get on your statement by 40%,” Linehan said. “I don’t think people will.” It’s about a $0.01 increase in sales tax. “.
A 40% reduction would be $2 billion.
Half of that could come from existing property tax credits that lawmakers have already approved, Linehan said.
“If there was a way to fill out your income tax refund in advance, you wouldn’t have to pay taxes in the first place,” Linehan said.
Another proposal places a hard cap on all local governments, which can only be overridden by voters in a general election.
“Last year, we tried a soft hat for school. 72 percent of them passed it, and it’s barely a hat,” Linehan said.
Linehan said billions more in property tax breaks could come from revenue growth, expanding gambling revenues and broadening the tax base by eliminating some sales tax exemptions. Although things like food, medical bills, and car repairs will not be taxed.
“We’ve been very careful not to tax things that people consider essential to people’s livelihoods,” Linehan said.
It still doesn’t work for senators like Gene Raybould.
“I don’t care how you spin it or call it something else. It’s raising taxes on working families in Nebraska. That’s wrong,” Raybould said.
Raybould, who has served on the Lincoln City Council and Lancaster County Council, said she is concerned the strict cap could jeopardize funding for essential services.
“They’ll distribute it to the counties and then they’ll bait and switch. Oh, we’re sorry. We don’t have the funding available this year, so you’ll have to pick up the slack,” Raybould said.
John Gage, director of Americans for Prosperity, said that a recent poll of 800 voters indicated that 70% opposed any increase in the sales tax.
“This is not tax reform. It’s just a tax increase,” Gage said.
He agreed that property taxes are too high.
“You have some of the worst property taxes in the country. But this is a problem, and the only way to solve it is to reduce government spending,” Gage said.
Linehan said the only way to achieve reform is through tax transformation.
“Everyone is taking a little risk here. They’re introducing bills that they probably don’t fully support and don’t really like,” Linehan said.
“A 40% reduction in property taxes paid is a pretty big prize,” Linehan said.
Nebraskans may get a better picture of the governor’s tax plan at his stateside address scheduled for Thursday at 10 a.m.
Click here to get the latest headlines from KETV NewsWatch 7