Outside The Box On Steroids’ Plan Would Replace State, Local Taxes With Consumption Tax

A legislative plan backers called “revolutionary” and “thinking outside the box on steroids” would eliminate all current state and local taxes in Nebraska.

In their stead, Legislative Resolution 300CA would require that a consumption tax be imposed on all new goods and all services purchased in the state.

State Sen. Steve Erdman of Bayard introduced the proposed constitutional amendment on Thursday, during the last hour of the last day of bill introduction for this year. He was joined by 9 co-sponsors, including 6 similarly conservative Republicans and 3 Democrats.

“This is a bill that’s going to change your life forever,” he said at a noon hour press conference, predicting the change would have people flocking into the state.

The consumption tax plan mirrors one that has been pushed at the national level since the mid-1990s by the Dallas-based Americans for Fair Taxation.  Backers now are turning their sights to the states.

Proposals have been introduced in recent years in Alabama, Georgia and Minnesota.

The Nebraska effort is being promoted by Nebraskans Supporting The FAIRtax