A tax package that will ultimately cost the state about $900 million annually while largely benefiting the wealthy and corporations is back on the Legislature’s agenda today after being rejected by lawmakers on Friday. The measure – this time packaged in LB 873 by way of AM 2649 – would:
- Phase in a full exemption of all Social Security income from taxation;
- Lower the state’s top personal and corporate income tax rates to 5.84% over the course of several years;
- Incorporate LB 723’s provision that sets the minimum level of the LB 1107 refundable income tax credit at $560 million once fully implemented; and
- Create a new refundable income tax credit for community college property taxes paid.
OpenSky estimates the measure would reduce state revenue by about $900 million annually by FY 2027-28. Such revenue losses would likely force future cuts to schools, health care and other key services or increases in other taxes and fees.
The bill is the first item on the Legislature’s agenda and debate will start at 9 a.m. Nebraska Public Media will stream debate live.
