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Related: About this forumNebraska governor is latest to propose ending state income tax
Nebraska governor is latest to propose ending state income tax
Reuters
5:54 p.m. EST, January 15, 2013
OMAHA (Reuters) - Nebraska Governor Dave Heineman on Tuesday became the second Republican governor in the last week to propose ending his state's income tax, saying he wants to make Nebraska more competitive with its neighbors by eliminating the tax on both individuals and corporations.
Heineman said that if a complete elimination of the two taxes could not be passed, he would push to lower rates on both individuals and corporations. He promised to make up the lost revenue by reducing business exemptions to the sales tax.
Last week, Louisiana Governor Bobby Jindal said he wanted to eliminate all personal and corporate income taxes in his state. Louisiana's personal income tax rate is 3.9 percent.
Nebraska's personal income tax rate is 6.84 percent, higher than every one of its neighbors -- Iowa, Kansas, Missouri, Colorado and Wyoming -- according to a table accompanying Heineman's remarks.
More:
http://www.sun-sentinel.com/news/nationworld/sns-rt-us-usa-nebraska-taxesbre90e16i-20130115,0,6184233.story
exboyfil
(17,865 posts)"Nebraska's personal income tax rate is 6.84 percent, higher than every one of its neighbors -- Iowa, Kansas, Missouri, Colorado and Wyoming -- according to a table accompanying Heineman's remarks."
Nebraska's top rates:
$27K+ 6.84%
Iowa's top rates:
$28K-42K 6.8%
$42K-63K 7.92%
$63K+ 8.98%
If he can't get this right, then he has no business being a governor.
FleetwoodMac
(351 posts)... will they expect more handouts from the federal government to pay their bills?
Gross Collections, 2011, Nebraska:
Business Income Tax: $2,697,893
Individual income tax withheld and FICA tax: $9,782,314
Individual income tax payments and SECA tax: $2,052,485
Unemployment Insurance Tax: $40,450
Railroad Retirement Tax: $984,417
Estate and trust income tax: $39,525
Estate Tax: $3,395
Gift Tax: $6,525
Excise Tax: $57,188
Total: $15,664,192
As it is now, Nebraska receives 82%* federal money for every tax dollar the state paid.
*2007-2009 Federal taxes paid, avg.: $18.87 billion
2007-2009 Federal funding received, avg.: $15.50 billion
Sunlei
(22,651 posts)FleetwoodMac
(351 posts)The state accords $5 billion in sales tax exemptions annually (incl. gas), far higher than the $1.6 billion collected in 2011, making it revenue negative.
Sunlei
(22,651 posts)FleetwoodMac
(351 posts)Sunlei
(22,651 posts)Proud Liberal Dem
(24,437 posts)A not-good one.......
Myrina
(12,296 posts)... long term effects of all of this, of course, is that with no income tax money in the coffers, state services (education, roads, FSSA, Medicare/Medicaid matching) will be privatized or eliminated.
They've found a way to fenagle the stupid mouth-breathing voters into getting on board with their 'drowning the government services' scam: "We're just eliminating income taxes to give you your own money back! (Never mind that in 5 years the state will be completely broke and look like a third world country) ...."
On the other hand, income tax rates in Indiana are ridiculously high compared to other states, so ... a cut I can see. Total elimination? Notsomuch.
Filibuster Harry
(666 posts)exact situation except I do know some people living there were disappointed when it was repealed. But when it comes to this Nebraska thing -- the offset is sales taxing more items?? How many more items??