Nebraska Governor Dave Heinman delivered his State of the State address to lawmakers Tuesday morning
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Heineman says the state needs to get rid of its individual and corporate income taxes and make up the lost revenue by shutting off as much as $2.4 billion in tax breaks for businesses.
Heineman says his plan would keep the state competitive with two neighboring states, Wyoming and South Dakota. Both have no individual income tax.
Heineman says he will introduce several options for lawmakers in the next few days that would eliminate sales tax exemptions for businesses. The governor did not specify which tax breaks he wants to eliminate, except to say he wouldn't support taxing food.
Key points in the Governor’s tax reform proposal:
· No individual income tax for working Nebraskans.
· No taxing of small business income.
· No taxation of Social Security income.
· No taxation of military retirement income.
· No taxation of any retirement income.
· No corporate income tax.
