Ricketts' income tax cut moves forward
Gov. Pete Ricketts last stab at a major cut in state income tax rates moved forward today.
A bill to chop the top individual Nebraska income tax rate from 6.84% to 5.84% in 2025 was given the halfway go-ahead by the Legislature.
The tax cut is estimated to cost the state several hundred million dollars over the next five years, raising concerns that state services—especially for those who need them most—will be cut.
But first and foremost, the battle lines are drawn over who benefits the most, the rich or the middle class.
State Sen. Tom Briese (R): These savings can also encourage more corporations to do business in Nebraska and that competition can help drive down prices for Nebraskans.
State Sen. John Cavanaugh (D): The question is whether your objective is to create a tax policy that is going to allow people to grow and get ahead or if it's going to be specifically to benefit people once they are ahead.
The bill must clear one more round of debate before going to the Governor for his signature.
One key item still waiting in the wings, an updated economic forecast telling lawmakers just how much extra tax money, if any, they will have to work with for the rest of the year.
Those numbers are likely to come out early next week.