Gov. Heineman to Call for Middle Class Tax Relief in Legislative Testimony

75% of Income Tax Relief Plan Benefits Middle Class
(Lincoln, NE) Today, Gov. Dave Heineman will emphasize the need for income tax relief for hard-working, middle class taxpayers. Scheduled to appearing before the Nebraska Legislature’s Revenue Committee this afternoon, Gov. Heineman will testify in favor of LB 970, the Governor’s $327million tax relief package, outlining the necessity of further tax relief.
“Nebraska has made significant progress in terms of taxes, but Nebraskans are still taxed too highly,” said Gov. Heineman. “Nebraskans deserve to keep more of the money they make instead of handing it over to government to spend. Nebraska is in the top half of highest taxed states and we can, and must, do better.”
Under LB 970, individual income tax relief will be provided by lowering rates and expanding brackets, supporting the middle class, with 75% of the relief going to Nebraskans with combined household incomes up to $150,000 annually.
Gov. Heineman outlined his tax relief package in his 2012 State of the State address, calling it the single most important priority of the legislative session. The tax relief package includes income and corporate tax relief, as well as elimination of the inheritance tax.
The proposal helps small businesses grow by lowering the top corporate tax rate to the same rate as the top individual rate. The repeal of inheritance tax is considered the final step in the elimination of Nebraska’s death tax. In 2007, as part of the largest tax relief package in the history of the state, the estate tax was repealed. However, Nebraska remains one of only 8 states in the United States to still have an inheritance tax, which hurts Nebraska significantly in tax competitiveness rankings.
“Nebraska’s current income tax system is unfair to middle class Nebraskans because they have to pay at the same marginal rate as Warren Buffett if a family’s adjusted gross income is greater than 54,000 a year,” said Gov. Heineman. “By improving our income and corporate tax rates, as well as repealing the final leg of the death tax, we will help hard-working middle class Nebraskans and our small businesses, while continuing to make Nebraska more competitive for high-quality jobs for the next generations of Nebraskans.”
LB 970 was introduced on the Governor’s behalf by state Senator Abbie Cornett of Bellevue. Gov. Heineman applauded her vision and leadership on this issue critical to Nebraska’s future.
The Governor highlighted the progress made in Nebraska’s tax climate improving from 45th to 30th since 2006 in the Tax Foundation’s state rankings. However, Gov. Heineman noted that there is more work to be done and middle class Nebraskans need tax relief.
“Some will say we can’t afford tax relief, but I say we can’t afford to miss this opportunity to help hard-working Nebraskans,” stated Gov. Heineman.