A golden opportunity for tax changes

After analyzing options for tax changes put forth by the Tax Modernization Committee, we believe some present a real opportunity to strengthen Nebraska and its economy.

Ideas that the committee will discuss at upcoming public hearings that start Monday in Scottsbluff would bolster investments in education, health care and public safety as well as reduce property taxes around the state.

You can read our full analysis here.

We believe if Nebraska pursues the right tax reforms today it will benefit the state for a long time. Some of the options put forth by the committee have the potential to create powerful tax reform that benefits all Nebraskans. These options include broadening the sales tax base, increasing state aid to local governments and providing property tax assistance.

Broadening the sales tax base to include more services will help bring the state’s tax code up to date with today’s service-based economy and generate more revenue that can be used to help lower property taxes.

Increasing state aid for K-12 education and local governments will lower property taxes and bolster Nebraska’s investment in education. The use of circuit breakers, which provide income tax credits to those who pay high property taxes in relation to their incomes, will help Nebraskans who need property tax assistance, get it.

Not all the options proposed by the committee stand to benefit the state and most of the options – such as cuts to the state’s income tax and taxing capital gains at a lower rate — would reduce state revenue. These options would take needed revenue without offering benefit to the state as a whole.

The committee has said that its final proposal should be revenue neutral and we strongly agree with that sentiment. The end proposal should not harm our state’s vital investments in areas such as schools and health care.

As the study moves forward, it’s important for lawmakers and the public to look beyond just the options presented for the hearings when it comes to possible changes to the tax code.

We urge you to attend the public hearings. The committee has worked hard and come up with some exciting ideas for tax reform but it’s important they hear from Nebraskans like you about what kind of changes are needed for our tax code.