Open Sky Policy Institute: Policy Brief — LR 11CA presents a dangerous, untested proposal

Under the proposed 10.64% tax rate, and with the allowance, the Institute on Taxation and Economic Policy (ITEP) finds that all income groups would receive a tax cut on average, with the exception of the second-lowest quintile — those with incomes between $24,000 and $38,800 — who would pay 2.4% more of their income in taxes than they do under the current system. However, the proposal would create an annual revenue loss of nearly $4 billion and drastically exacerbate the regressivity of our state tax code. ITEP projects the proposal would move Nebraska from 36th to 5th nationally for the most regressive tax code. Read more

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