Gov. Jim Pillen’s plan to flatten Nebraska’s income tax rates could save money for at least half of the state’s tax filers but leave out the rest.
His proposal would cut the top rate for both individual and corporate income taxes more steeply than a tax package passed last year, eventually dropping to a top rate of 3.99%. Both plans would phase in the cuts over the next few years.
But by 2027, when the plans reach their target, Pillen’s top rate would be nearly 32% lower than the top rate in last year’s package and would reduce taxes for people in the top two of Nebraska’s four income brackets. Pillen’s plan would mean an additional $1.5 billion less in tax revenues through June 30, 2027.
