At least six states have slashed income tax rates this year — and more could follow — as state leaders seek to return excess money to taxpayers and outdo their neighbors.
In a story published by Pluribus News, a digital media outlet reporting on state-level public policy, Michael D’Arcy of Fitch Ratings joined OpenSky Executive Director Dr. Rebecca Firestone and state Sen. George Dungan in expressing concern over the sustainability of tax cuts being debated in Nebraska this session.
Nebraska’s tax cut plans are among the most aggressive in the country, said D’Arcy, director of U.S. public finance for Fitch Ratings, a credit rating agency. “They’re sitting on a lot of buffers, in terms of cash and fund balances,” he said. “But over time, I wonder whether Nebraska’s going to feel some real pressure at a certain point.”