Gov. Pete Ricketts said his four legislative priorities were tax relief, prisons, water projects and COVID-19 relief.
Gov. Pete Ricketts and a number of business spokesmen said Monday that pending legislation to reduce Nebraska’s individual income tax rate is key to attracting and retaining workers, families and businesses in the state.
“We need to be competitive,” Ricketts said during a news conference with Bryan Slone, president of the Nebraska Chamber of Commerce and Industry, and representatives from one small and one large Lincoln business.
Nebraska’s comparatively high state income tax rate currently is an incentive for families to leave the state, the governor said.
An income tax reduction bill (LB939), introduced by Sen. Lou Ann Linehan of Elkhorn, is awaiting first-stage floor consideration in the Legislature with a number of proposed amendments pending.
The proposal would incrementally reduce the top income tax rate for individuals from 6.84% to 5.84%, providing parity with the top corporate income tax rate.
The impact on state government revenue would rise incrementally from an initial reduction of $62 million in fiscal 2022-23 to $363 million in fiscal 2026-27, according to estimates.
“If we continue to control (state government) spending,” Ricketts said, the state can continue to deliver tax relief.
Some $548 million in additional property tax relief is being provided now through a refundable income tax credit on property taxes paid to support public schools, the governor said.
And the Legislature, with his support, is now accelerating elimination of state income taxes applied to Social Security benefits, moving the timetable up from 10 years to five years, he noted.
Slone stressed that the proposed income tax reduction will affect teachers, farmers and young people.
“It’s not just a tax break for the rich,” he said.
Scott Gubbels, executive director of tax and renewable energy services for Nelnet, said the income tax reduction could be “a game-changing move” that would incentivize growth, investment and residency in Nebraska.
And that in turn, he said, would expand the tax base.
Adam Kavan, owner of Kavan Custom Construction, said the proposal represents “a big step in the right direction” in terms of incentivizing people to want to live in Nebraska and, in terms of his small business, “allowing us to make strategic investments.”
The proposed tax reduction would assist more than 60% of Nebraska families, Ricketts said.
Meet the state senators making laws in 2022
Ray Aguilar
District 35
Ray Aguilar
Grand Island
Elected 2020
402-471-2617
Joni Albrecht
District 17
Joni Albrecht
Thurston
Elected 2016, 2020
402-471-2716
John Arch
District 14
John Arch
La Vista
Elected 2018
402-471-2730
Carol Blood
District 3
Carol Blood
Bellevue
Elected 2016, 2020
402-471-2627
Eliot Bostar
District 29
Eliot Bostar
Lincoln
Elected 2020
402-471-2734
Bruce Bostelman
District 23
Bruce Bostelman
Brainard
Elected 2016, 2020
402-471-2719
Tom Brandt
District 32
Tom Brandt
Plymouth
Elected 2018
402-471-2711
Tom Brewer
District 43
Tom Brewer
Gordon
Elected 2016, 2020
402-471-2628
Tom Briese
District 41
Tom Briese
Albion
Elected 2016, 2020
402-471-2631
Machaela Cavanaugh
District 6
Machaela Cavanaugh
Omaha
Elected 2018
402-471-2714
Robert Clements
District 2
Robert Clements
Elmwood
Appt. ’17, Elected 2018
402-471-2613
Jen Day
District 49
Jen Day
Omaha
Elected 2020
402-471-2725
Wendy DeBoer
District 10
Wendy DeBoer
Bennington
Elected 2018
402-471-2718
Myron Dorn
District 30
Myron Dorn
Adams
Elected 2018
402-471-2620
Steve Erdman
District 47
Steve Erdman
Bayard
Elected 2016, 2020
402-471-2616
Mike Flood
District 19
Mike Flood
Norfolk
Elected 2020
402-471-2929
Curt Friesen
District 34
Curt Friesen
Henderson
Elected 2014, ’18
402-471-2630
Suzanne Geist
District 25
Suzanne Geist
Lincoln
Elected 2016, 2020
402-471-2731
Tim Gragert
District 40
Tim Gragert
Creighton
Elected 2018
402-471-2801
Mike Groene
District 42
Mike Groene
North Platte
Elected 2014, ’18
402-471-2729
Steve Halloran
District 33
Steve Halloran
Hastings
Elected 2016, 2020
402-471-2712
Ben Hansen
District 16
Ben Hansen
Blair
Elected 2018
402-471-2728
Matt Hansen
District 26
Matt Hansen
Lincoln
Elected 2014, ’18
402-471-2610
Mike Hilgers
Districts 21
Mike Hilgers
Lincoln
Elected 2016, 2020
402-471-2673
Robert Hilkemann
District 4
Robert Hilkemann
Omaha
Elected 2014, ’18
402-471-2621
Dan Hughes
District 44
Dan Hughes
Venango
Elected 2014, ’18
402-471-2805
Megan Hunt
District 8
Megan Hunt
Omaha
Elected 2018
402-471-2722
Mark Kolterman
District 24
Mark Kolterman
Seward
Elected 2014, ’18
402-471-2756
Steve Lathrop
District 12
Steve Lathrop
Omaha
Elected 2018
402-471-2623
Brett Lindstrom
District 18
Brett Lindstrom
Omaha
Elected 2014, ’18
402-471-2618
Lou Ann Linehan
District 39
Lou Ann Linehan
Elkhorn
Elected 2016, 2020
402-471-2885
John Lowe Sr.
District 37
John Lowe Sr.
Kearney
Elected 2016, 2020
402-471-2726
John McCollister
District 20
John McCollister
Omaha
Elected 2014, ’18
402-471-2622
Mike McDonnell
District 5
Mike McDonnell
Omaha
Elected 2016, 2020
402-471-2710
Terrell McKinney
District 11
Terrell McKinney
Omaha
Elected 2020
402-471-2612
Adam Morfeld
District 46
Adam Morfeld
Lincoln
Elected 2014, ’18
402-471-2720
Mike Moser
District 22
Mike Moser
Columbus
Elected 2018
402-471-2715
Dave Murman
District 38
Dave Murman
Glenvil
Elected 2018
402-471-2732
Rich Pahls
District 31
Rich Pahls
Omaha
Elected 2020
402-471-2327
Patty Pansing Brooks
District 28
Patty Pansing Brooks
Lincoln
Elected 2014, ’18
402-471-2633
Rita Sanders
District 45
Rita Sanders
Bellevue
Elected 2020
402-471-2615
Julie Slama
District 1
Julie Slama
Peru
Appt. ’18, Elected 2020
402-471-2733
John Stinner
District 48
John Stinner
Gering
Elected 2014, ’18
402-471-2802
Tony Vargas
District 7
Tony Vargas
Omaha
Elected 2016, 2020
402-471-2721
Lynne Walz
District 15
Lynne Walz
Fremont
Elected 2016, 2020
402-471-2625
Justin Wayne
District 13
Justin Wayne
Omaha
Elected 2016, 2020
402-471-2727
Matt Williams
District 36
Matt Williams
Gothenburg
Elected 2014, ’18
402-471-2642
Anna Wishart
District 27
Anna Wishart
Lincoln
Elected 2016, 2020
402-471-2632
Reach the writer at 402-473-7248 or [email protected].
On Twitter @LJSdon
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