Citations

The Institute on Taxation and Economic Policy confirms that “cigarette tax revenues grow more slowly than the cost of almost any public service that could be funded using these taxes” and that “[s]tates that use these taxes to fund public services may be disappointed in the long run.” Read more.

The COVID-19 pandemic spurred temporary expansions to existing anti-poverty programs, which had a profound impact on poverty rates…Key programs during this period included SNAP, the refundable Child Tax Credit, and increased funding for TANF. As federal pandemic relief has expired, several states have enacted state-level replacements. Read more. 

Most Nebraskans who claim the state income tax credit on property taxes paid to public schools will see little change in what they pay resulting from the tax package to be debated today, the final day of the Legislative session. But for Nebraska’s lowest-income earners – households making less than $30,000 annually – the impact of […]

The tax package designed to lower property taxes paid to local political subdivisions would increase the tax burden on low- and middle-income working families and make it increasingly difficult for cities, counties and schools to provide the services that Nebraskans expect.

The Legislature on Wednesday and Thursday will consider property tax breaks and corresponding income tax cuts that together would restrict the revenue that’s available to fund important programs that all Nebraskans rely on for years to come. Read more.

New evidence on child tax credits at the federal level has shown “stunning” results in lifting children out of poverty throughout the country and a state-level policy could continue that momentum, benefiting a broad range of families, panelists including ITEP State Policy Director Aidan Davis said in a February 8 webinar.

The consumption tax proposal in LB 79 would require a rate of 22.1 percent to be revenue neutral, OpenSky analysis conducted with the Institute on Taxation and Economic Policy finds. This rate is nearly three times greater than what is proposed in the bill. Further, OpenSky estimates that if the consumption tax were to be […]

The cost of high-profile K-12 finance and tax packages introduced this week would entirely consume the projected $1.9 billion that lawmakers have to enact new legislation in the current two-year budget cycle and then some. Read more.

Non-Nebraskans, corporations and wealthy residents would be big winners under the latest income tax cuts proposed in in LB 938 and LB 939. Meanwhile, the bills – which would ratchet the state’s top corporate and personal income tax rates to 5.84% over four and three years respectively – offer most Nebraskans little tax savings while depleting revenue needed […]

LB 64, a bill slated for second-round debate on today’s legislative agenda, is a costly measure that would give wealthy retirees a sizable tax break under the premise of keeping them from fleeing to other states. Few retirees, however, are likely to flee regardless of what happens to our tax code and those who do […]

LB 432, which will soon be up for debate on select file, would give a sizable tax cut to corporations and their shareholders. The vast majority of the tax cut would go out of state and the revenue losses created by the bill would threaten services that Nebraskans need. Read more

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 […]

LB 461, the tax-cut package put forth by the Revenue Committee, is first and foremost an income tax cut for wealthy Nebraskans and the proposal does little to truly address property tax relief. In fact, LB 461 is fundamentally flawed in a way that makes it more likely to exacerbate, not help, Nebraska’s reliance on […]

Forty percent of Nebraskans would see tax increases under LB 452 Low- and middle-income earners pay more of their incomes in sales taxes than income taxes. This is reflected in Institute on Taxation and Economic Policy (ITEP) data that show LB 452 – which includes a sales tax expansion — would raise taxes on average […]

Below are some facts regarding, LB 337, the governor’s income tax cut plan: The example middle-class Nebraska taxpayer used to roll out the plan would not receive a tax cut under LB 337. Once the standard deduction is applied, this taxpayer, who earns $29,831, would not pay the top tax rate on any income, and therefore would […]