Open Sky Policy Institute: LB 357 would lead to budget cuts, benefits top earnersITEP Work in Action
LB 357 calls for significant reductions in personal and corporate income tax rates over several years. It also transfers $160 million out of the cash reserve, $80 million to the Property Tax Credit Program and another $80 million to the General Fund to fill in for the loss of income tax revenue in the first two years.
In spite of its gradual implementation, LB 357 would leave future lawmakers with a budget crisis as they inherit a depleted cash reserve and the need to make continuous cuts to vital services like schools and health care. The bill also will largely benefit the highest income Nebraskans and send about a third of its income tax cuts out of state.Furthermore, property tax increases likely will be needed over time to offset the loss of state support.