Consumption tax proposal falls short in Legislature

Sen. Steve Erdman's effort to call for a vote of the people on a proposed constitutional amendment to repeal the state income tax, the state sales tax and local property taxes while creating a new consumption tax to support state and local government failed to clear its first floor hurdle in the Legislature on Tuesday and disappeared from the agenda.

The bill (LR264CA), which also would eliminate the inheritance tax, was trapped on a 19-14 vote that left it six votes short of the 25 required to move on to second-stage floor consideration.

Erdman, who hails from Bayard in western Nebraska, argued that "Band-Aids will not fix the problem" of high taxes in the state, which he said are leading to people leaving Nebraska and exacerbating an ongoing workforce shortage.

"Our economy will explode" if that exodus continues and jobs remain unfilled, he said.