The Revenue Committee from the Nebraska Legislature recently advanced a package of income and property tax cuts that, as amended, would cost the state $458 million a year when fully implemented.
Governor Pete Ricketts and advocates for tax relief rallied in the State Capitol rotunda for LB461, the 2017 Nebraska Taxpayer Reform Act. “Tax reform is a key component to grow Nebraska,” said Ricketts.
Revenue Committee Chair Jim Smith of Papillion and Agriculture Committee Chair Lydia Brasch of Bancroft urged urban and rural senators to come together and support LB461 during the first round debate last Friday, but the bill ran into opposition.
Legislators speaking against the plan said LB461 will harm communities across the state by reducing funding for public education, public safety, health care, job training and transportation infrastructure, all critical for strong economic development.
Non-profit organizations across Nebraska agree the proposal does little to address property tax relief and some Nebraskans would actually pay more in overall taxes under this bill.
Senators took a test vote of sorts, voting on whether or not to send the bill back to committee for more work. Supporters generally opposed the move, while opponents supported it, although there appeared to be exceptions. The move failed on a vote of 15-29, with five senators either missing or not voting.
It would take 17 opponents to block the bill with a filibuster, or 33 senators to overcome a filibuster. Smith said he expects senators to return to the bill after dealing with the state budget.
TAXPAYERS OF NE AND LB461
