After months of formulating a tax reduction package and weeks of argument over how it should be shaped, the Legislature on Thursday gave 43-0 final approval to a major tax cut bill that will sharply reduce future anticipated state revenue.
The proposal (LB873) will reduce the state's top income tax rate for individuals and corporations, expand state income tax credits for property taxpayers and accelerate the previously approved phased elimination of state income taxation of Social Security income.
The resulting reduction of anticipated state revenue estimated by the Nebraska Department of Revenue would grow from $213.8 million in the 2023-24 fiscal year to $867.2 million in fiscal 2026-27.
A largely unanticipated surge in state revenue and the resulting growth of the state's cash reserve, dubbed the rainy day fund, helped fuel support for the large tax reduction.
Major state tax reduction bill approved by Legislature
- by: Don Walton
- 04-07-2022
- Source:
North Platte Telegraph
- 04/08/2022
Nebraska State Capitol Building, Lincoln by Tony Webster is licensed under flickr Attribution 2.0 Generic (CC BY 2.0)
Nebraska State Capitol Building, Lincoln by Tony Webster is licensed under flickr Attribution 2.0 Generic (CC BY 2.0)
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