Lincoln Journal Star on October 30: Sales tax cut would boost economy more than income tax cut, state study finds
A $100 million cut in state sales taxes would benefit Nebraska’s economy more than a similar income tax cut while having less negative impact on the state’s overall revenue, tax officials say in a new report.
Neither type of cut would pay for itself, according to the 2012 Nebraska Tax Burden Study released Friday by the state Department of Revenue.
The study is done every two years and required by state law. This time, it’s certain to provide ammunition for lawmakers who plan to oppose broad income tax cuts next legislative session by arguing they would damage the state and be unsustainable.
“This report provides a blueprint on what not to do,” said Sen. Heath Mello, a Democrat from Omaha and chairman of the Legislature’s budget-building Appropriations Committee.