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Idea of Eliminating Nebraska Income Tax Remains Alive

taxes(AP) — The idea of eliminating the state income tax remains alive as the Nebraska Tax Modernization Committee continued its review of tax policy.

Earlier this year Gov. Dave Heineman proposed eliminating or reducing the state’s income tax. He pulled back the idea after a torrent of criticism about new taxes that would have replaced the revenue lost.

State Sen. Galen Hadley, of Kearney, wants the state to join the seven others in the nation that don’t have an income tax. He said at Tuesday’s committee meeting in Lincoln that supporters are pursuing the idea “more systematically to make sure we do it the right way.”

Sen. Pete Pirsch, of Omaha, says legislators would have to find $2.5 billion in new taxable transactions to make up for the loss of income tax.

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