Revenue

Reducing corporate income taxes in Nebraska is not a strategy that will lead to more jobs and a strong economy.                
That’s because extensive data shows that no clear relationship exists between corporate income tax cuts and economic growth or… (read more)

For numerous reasons, claims that reducing the personal income tax in Nebraska will promote economic growth are unsubstantiated. Whether one looks at overall economic growth, employment levels or small-business job creation, data from across the United States show no clear relationship between personal income taxes and a state’s economic well-being.

A move to cut income taxes in favor of higher sales taxes will lead to tax increases for 80 percent of Nebraskans, a report by the OpenSky Policy Institute shows.
“State economies flourish when policies are enacted that strengthen the… (read more)

Department of Revenue estimates shed significant doubt on claims that LB 405 and LB 406 would be revenue neutral for Nebraska’s budget.
The bills call for cuts and reductions to the state’s income tax in favor of increased sales taxes.… (read more)

During the general file debate of LB 970, a number of questions were raised about the current assumptions of TEEOSA growth in the next biennium and how changing those assumptions would impact the amount of funding available for LB 970. … (read more)

OpenSky Policy Institute has been compiling data on LB 970, as revised under AM 2572.  All references to LB 970 here are to the bill as amended. Here is a summary of our main conclusions:
 
•           LB 970 would… (read more)

 
LB 970 would greatly increase the currently projected $462 million shortfall for the coming biennium, requiring major reductions to the budget as projected by the Appropriations Committee and LFO.
 

 
Here is how the amended law would affect… (read more)

LB 970 — the Governor’s tax cut package — has been amended by the Revenue Committee and will soon be debated by the full Legislature. The amendment would phase in the personal income tax cuts over three years. OpenSky Policy Institute… (read more)

Updated March 8th 
Proposed Changes to LB970 Still Unaffordable
 The most recent figures from the Appropriations Committee and LFO project a $461 million budget deficit for the 2013-2015 biennium, without the tax cuts proposed in LB970.
Passing the tax cuts… (read more)

 
Of the individual income tax cuts proposed under LB970, 7.2% – 9.5% would go to non-Nebraskans, sending $20-$26 million out of state.
 
 
Sources:Nebraska Department of Administrative Services Budget Division, “Mid-Biennium Budget Adjustments, 2011–2013 Biennium” http://budget.ne.gov/das_budget/budget12/midbienniumbook12.pdfNebraska Department of… (read more)