Nebraska tax-cut package revised after hitting roadbump

LINCOLN, Neb. (AP) — A proposal to lower Nebraska’s top income tax rates got a substantial makeover on Tuesday to try to build support among state lawmakers after it hit a procedural roadblock in the Legislature.
Members of the tax-focused Revenue Committee voted to slow the phase-in of the income tax cuts, from three years to five. They also agreed to an amendment that would create an income tax credit to offset the taxes that property owners pay to community colleges.
Combining the proposals is likely to win support from some rural lawmakers who consider property taxes their top concern. However, some senators said Tuesday that they’re still opposed to income tax cuts that would largely benefit the wealthy and out-of-state corporations.
Supporters have argued that Nebraska’s current 6.84% rate for individuals makes the state look expensive compared to its neighbors.
Sen. John Cavanaugh, of Omaha, proposed an amendment Tuesday that would give taxpayers a one-time, $200 payment and adjust income tax brackets for inflation.
Lawmakers had been slated to vote on the tax bill Tuesday, but it was derailed by a procedural move that prevented senators from attaching key amendments.