The Legislature’s Revenue Committee has scheduled a public hearing on Gov. Heineman’s corporate an personal income tax proposal.  These charts and an analysis of the proposal show the impact of the cuts.  A quick summary is below.  Thanks to Open Sky Policy Institute for doing such a thorough analysis.  We ask you to please reach out to the Revenue Committee and ask them to NOT support this bill.  Their contact information is below.

* LB 970’s plan would almost double the deficit projected by the
Legislative Fiscal Office.  The deficit is currently projected to be $343
million; LB 970 would increase it to $636.5 million ending in 2014-15.

* More than half of the proposed cuts to the personal income tax would go
to the wealthiest 20% of taxpayers (those making $88k or more), at a cost
of $126 million.

* More than one-fifth of the reduction would go to the richest 5% of
taxpayers, at a cost of $50 million.

* The richest 1 percent of taxpayers would receive 9% of the reduction, at
a cost of $21 million

* The lowest-income taxpayers in the bottom 20% (those making less than
$20k) would receive 1% of the tax reduction. The 40% of Nebraskans who make
less than $36,000 would receive 7% of the reduction.

*Only 20% ($46m) is devoted to lowering the taxes of Nebraskans making less
than $57,000 per year- who make up well over half our state’s residents.

*For reference, according to the US Census, the average median household
income in Nebraska is $47,470.

Committee Members (click to get their contact information)