February 16, 2017

Open Sky Policy Institute: Income tax bills good for wealthy and non-residents

ITEP Work in Action

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 for the 40 percent of Nebraskans who earn less than $43,000. (Figure 1) The next 20 percent of Nebraska earners who make between $43,000 and $67,000 would see average annual tax cuts of $14 while the wealthiest 1 percent of Nebraskans, those who make more than $509,000 annually, would receive average tax cuts of about $5,831.

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