2016 Postmortem

Judi Lynn

(160,591 posts) Wed Jan 16, 2013, 05:16 AM Jan 2013

Nebraska 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

10 replies

= new reply since forum marked as read

Highlight:

Nebraska governor is latest to propose ending state income tax (Original Post) Judi Lynn Jan 2013 OP

Bull when it comes to Iowa exboyfil Jan 2013 #1

Considering the fact that 99.6% of Nebraska's income is from corporate and state taxes, FleetwoodMac Jan 2013 #2

what about property tax, sales tax, gas tax Sunlei Jan 2013 #5

Property tax is collected at county level... FleetwoodMac Jan 2013 #7

county revenue from property tax is revenue for the state. Sunlei Jan 2013 #8

No. "State government has been prohibited from levying a property tax since..." FleetwoodMac Jan 2013 #9

what I mean is the counties are in the state and the state citizens benefit from that revenue. Sunlei Jan 2013 #10

This sounds like its becoming a trend Proud Liberal Dem Jan 2013 #3

Indiana's new Gov (Pence R- Teabagistan) is doing the same ... Myrina Jan 2013 #4

Florida once had an income tax. They repealed it and took a hit early on. I don't know their Filibuster Harry Jan 2013 #6

exboyfil

(17,865 posts)

1. Bull when it comes to Iowa

Reply to Judi Lynn (Original post)

Wed Jan 16, 2013, 06:53 AM

Jan 2013

"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)

2. Considering the fact that 99.6% of Nebraska's income is from corporate and state taxes,

Reply to Judi Lynn (Original post)

Wed Jan 16, 2013, 08:27 AM

Jan 2013

... 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)

5. what about property tax, sales tax, gas tax

Reply to FleetwoodMac (Reply #2)

Wed Jan 16, 2013, 10:50 AM

Jan 2013

FleetwoodMac

(351 posts)

7. Property tax is collected at county level...

Reply to Sunlei (Reply #5)

Wed Jan 16, 2013, 11:41 AM

Jan 2013

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)

8. county revenue from property tax is revenue for the state.

Reply to FleetwoodMac (Reply #7)

Wed Jan 16, 2013, 11:45 AM

Jan 2013

FleetwoodMac

(351 posts)

9. No. "State government has been prohibited from levying a property tax since..."

Reply to Sunlei (Reply #8)

Wed Jan 16, 2013, 12:06 PM

Jan 2013

"The property tax is levied only by local governments in Nebraska. State government has been prohibited from levying a property tax since a successful initiative petition in 1966."

Sunlei

(22,651 posts)

10. what I mean is the counties are in the state and the state citizens benefit from that revenue.

Reply to FleetwoodMac (Reply #9)

Wed Jan 16, 2013, 01:48 PM

Jan 2013

Proud Liberal Dem

(24,426 posts)

3. This sounds like its becoming a trend

Reply to Judi Lynn (Original post)

Wed Jan 16, 2013, 08:32 AM

Jan 2013

A not-good one.......

Myrina

(12,296 posts)

4. Indiana's new Gov (Pence R- Teabagistan) is doing the same ...

Reply to Judi Lynn (Original post)

Wed Jan 16, 2013, 10:44 AM

Jan 2013

... 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)

6. Florida once had an income tax. They repealed it and took a hit early on. I don't know their

Reply to Judi Lynn (Original post)

Wed Jan 16, 2013, 11:25 AM

Jan 2013

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??

Reply to this discussion