As senators reconvene today, OpenSky Policy Institute will support policymakers to make measured, evidence-based decisions that work to achieve a Nebraska where prosperity is not an exclusive privilege but a reality for all. 

Already, we’re analyzing the Pillen administration’s proposal to dramatically raise the state’s sales tax rate to generate the revenue it seeks to reduce property taxes. As reported on Tuesday, plans call for raising the sales tax rate by 2 cents, a 36% hike that would make Nebraska’s sales tax rate the highest in the nation.

In an Op-Ed published Sunday in the Omaha World-Herald, Dr. Rebecca Firestone, OpenSky’s Executive Director, noted that “hardworking Nebraskans are the engines of our economy and our tax dollars are a key way we all contribute to a state that is supposed to serve all of us.”

However, the governor’s proposal is the latest example of a revenue system that works for some, but not all. If approved, all Nebraskans would pay more in taxes for cars, clothes and diapers in order to reduce taxes just for property owners.

Over recent years, Nebraska policymakers have passed some of the deepest income tax cuts in the nation, shifting public funds away from potential investments that could have empowered hardworking Nebraskans in order to provide tax cuts that will overwhelmingly benefit corporations and the wealthy for years to come. As a result of these steep income tax cuts, policymakers have fewer options available to tackle the key challenges of rising land valuations and housing prices that are driving increases in property taxes.

A strong Nebraska is one in which our economy works for everyone – where working families, small businesses and family farms have the tools they need to build “the Good Life” and where governments and corporations are partners in creating opportunities for everyday Nebraskans.  

Throughout this year’s session, OpenSky will prioritize sustainable and predictable state revenue streams to ensure Nebraska can invest for long-term prosperity. 

Said Firestone: “Together, we can create a future where all Nebraskans can thrive.”

Read Op-Ed in the Omaha World-Herald

Sign up for budget webinar

Join OpenSky Policy Institute and the Nonprofit Association of the Midlands for a virtual briefing on state revenue issues and the state’s budget at noon on Wednesday, January 10. Register today.