Lawmakers are considering an overhaul of Nebraska's tax structure at a time when revenues are falling short, the state is dipping into the rainy day fund, and the Governor is pushing to freeze child care subsidy rates, withholding approximately $7.4 million from the program that serves low-income working families.
LB 461 would cut taxes for the wealthy while doing little for average Nebraskans.
Tax cuts in other states - like Kansas - have failed to create the economic boon that proponents promised. The specific tax proposal from Governor Ricketts has "triggers", meaning cuts would go into effect in later years based on revenue numbers. Putting tax cuts for the wealthy on autopilot is misguided.
Capping future revenue could stall our state's ability to invest in early childhood education - and worse - it could jeopardize our ability to fund our obligations like education, health care, transportation and other basic needs.
The proposed package would cut corporate tax rates, income tax rates, agriculture property tax rates and provide a minimal increase in the EITC. When fully implemented, LB 461 would siphon $458 million annually from the state budget and lead to cuts in investments that serve communities statewide.