Most would pay more in overall taxes under discussed income, sales tax rate changes

Ninety-nine percent of Nebraskans would see average overall state increases should the state increase its sales tax by half a cent and reduce its top corporate and individual income tax rates to 6.75 percent, Institute on Taxation and Economic Policy (ITEP) data show.

While 99 percent of Nebraskans would see their state taxes increase on average, ITEP data show the wealthiest one percent of Nebraskans would receive a $477 tax cut on average under the tax rate adjustments, which were discussed in a recent Revenue Committee executive session.

This analysis does not account for the effect of other changes the committee discussed, such as raising cigarette taxes and taxing soda, junk food, pet-care services and lawn care. Also, it is impossible to know at this point how any property tax reductions that could come from the committee’s tax plan would affect what Nebraskans pay in overall state and local taxes.