Personal Taxes

Opponents filibuster invoice to scale back high personal earnings tax charge in Nebraska | Regional Authorities

Legislation to reduce Nebraska’s top personal income tax rate smacked into a filibuster Wednesday waged by opponents who said it would overwhelmingly advantage wealthy taxpayers while leading to deep cuts in state revenue.

Sen. Lou Ann Linehan of Elkhorn, chairwoman of the Legislature’s Revenue Committee and sponsor of the bill (LB939), argued that the proposal would bring tax relief to most Nebraskans, help address the challenge of building the state’s workforce and attract more businesses to the state.

“It’s a tax cut for middle-class families,” Linehan said. “It’s not about the rich.”

But it disproportionately benefits wealthy Nebraskans like Gov. Pete Ricketts, Sen. Megan Hunt of Omaha argued while providing a tax cut as low as $7 for some Nebraskans.

“We should target tax cuts,” Hunt said, while creating more income tax brackets rather than continue to crowd most Nebraskans into the highest bracket which applies to all taxpayers earning more than $33,100 a year.

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“This is a tax cut for millionaires and billionaires,” she said.

Ricketts, business spokesmen urge state income tax rate reduction

Nebraska state tax collections beat expectations in January

The bill would incrementally reduce the 6.84% rate currently in effect to 5.84% by 2025, phasing the cut in with a reduced corporate income tax rate.

Sen. Curt Friesen of Henderson sounded an alarm bell about the potential impact on future state revenue.

“It goes too far,” he said. “It would lead to a significant decline in revenue. We need to look at long-term fiscal stability.”

The proposed tax cut would reduce anticipated annual state revenue by $61.7 million in fiscal 2022-23, growing to $363.4 million by fiscal 2026-27, according to a legislative estimate of the fiscal impact.

“We’re simply not competitive with our neighboring states” in terms of tax policy, Linehan said.

And, besides, she said, “It’s their money, not ours.”

Current tax rates are “not conducive to growing our state,” Sen. Tom Briese of Albion said in supporting the bill.

Speaker of the Legislature Mike Hilgers of Lincoln said current tax policy “chokes off opportunity for people in the middle class.”

Referring to proposals to create more tax brackets, Sen. Robert Hilkemann of Omaha said he “hope(s) we can find a way that we can afford this bill.”

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Meet the state senators making laws in 2022

Ray Aguilar

district 35

Ray Aguilar

Grand Island

Elected 2020

402-471-2617

raguilar@leg.ne.gov


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Joni Albrecht

Joni Albrecht

district 17

Joni Albrecht

thurston

Elected 2016, 2020

402-471-2716

jalbrecht@leg.ne.gov


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John Arch

John Arch

district 14

John Arch

LaVista

Elected 2018

402-471-2730

jarch@leg.ne.gov


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CarolBlood

CarolBlood

district 3

CarolBlood

Bellevue

Elected 2016, 2020

402-471-2627

cblood@leg.ne.gov


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Eliot Bostar

Eliot Bostar

district 29

Eliot Bostar

Lincoln

Elected 2020

402-471-2734

ebostar@leg.ne.gov


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Bruce Bostelman

Bruce Bostelman

district 23

Bruce Bostelman

Brainard

Elected 2016, 2020

402-471-2719

bbostelman@leg.ne.gov


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Tom Brandt

Tom Brandt

district 32

Tom Brandt

Plymouth

Elected 2018

402-471-2711

tbrandt@leg.ne.gov


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Tom Brewer

Tom Brewer

district 43

Tom Brewer

Gordon

Elected 2016, 2020

402-471-2628

tbrewer@leg.ne.gov


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Tom Briese

Tom Briese

district 41

Tom Briese

albion

Elected 2016, 2020

402-471-2631

tbriese@leg.ne.gov


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Machaela Cavanaugh

Machaela Cavanaugh

district 6

Machaela Cavanaugh

omaha

Elected 2018

402-471-2714

mcavanaugh@leg.ne.gov


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Robert Clements

Robert Clements

district 2

Robert Clements

Elmwood

apt. ’17, Elected 2018

402-471-2613

rclements@leg.ne.gov


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Jen Day

Jen Day

district 49

Jen Day

omaha

Elected 2020

402-471-2725

jday@leg.ne.gov


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Wendy DeBoer

Wendy DeBoer

district 10

Wendy DeBoer

Bennington

Elected 2018

402-471-2718

wdeboer@leg.ne.gov


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Myron Thorn

Myron Thorn

district 30

Myron Thorn

adams

Elected 2018

402-471-2620

mdorn@leg.ne.gov


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Steve Erdman

Steve Erdman

district 47

Steve Erdman

Bayard

Elected 2016, 2020

402-471-2616

serdman@leg.ne.gov


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Mike Flood

Mike Flood

district 19

Mike Flood

Norfolk

Elected 2020

402-471-2929

mflood@leg.ne.gov


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Curt Friesen

Curt Friesen

district 34

Curt Friesen

Henderson

Elected 2014, ’18

402-471-2630

cfriesen@leg.ne.gov


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Suzanne Geist

Suzanne Geist

district 25

Suzanne Geist

Lincoln

Elected 2016, 2020

402-471-2731

sgeist@leg.ne.gov


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Tim Gragert

Tim Gragert

district 40

Tim Gragert

Creighton

Elected 2018

402-471-2801

tgragert@leg.ne.gov


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Mike Groene

Mike Groene

district 42

Mike Groene

North Platte

Elected 2014, ’18

402-471-2729

mgroene@leg.ne.gov


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Steve Halloran

Steve Halloran

district 33

Steve Halloran

Hastings

Elected 2016, 2020

402-471-2712

shalloran@leg.ne.gov


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Ben Hansen

Ben Hansen

district 16

Ben Hansen

Blair

Elected 2018

402-471-2728

bhansen@leg.ne.gov


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Matt Hansen

Matt Hansen

district 26

Matt Hansen

Lincoln

Elected 2014, ’18

402-471-2610

mhansen@leg.ne.gov


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Mike Hilgers

Mike Hilgers

District’s 21st

Mike Hilgers

Lincoln

Elected 2016, 2020

402-471-2673

mhilgers@leg.ne.gov


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Robert Hilkemann

Robert Hilkemann

district 4

Robert Hilkemann

omaha

Elected 2014, ’18

402-471-2621

rhilkemann@leg.ne.gov


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Dan Hughes

Dan Hughes

district 44

Dan Hughes

Venango

Elected 2014, ’18

402-471-2805

dhughes@leg.ne.gov


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Megan Hunt

Megan Hunt

district 8

Megan Hunt

omaha

Elected 2018

402-471-2722

mhunt@leg.ne.gov


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Mark Kolterman

Mark Kolterman

district 24

Mark Kolterman

Seward

Elected 2014, ’18

402-471-2756

mkolterman@leg.ne.gov


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Steve Lathrop

Steve Lathrop

district 12

Steve Lathrop

omaha

Elected 2018

402-471-2623

slathrop@leg.ne.gov


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Brett Lindstrom

Brett Lindstrom

district 18

Brett Lindstrom

omaha

Elected 2014, ’18

402-471-2618

blindstrom@leg.ne.gov


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Lou Ann Linehan

Lou Ann Linehan

district 39

Lou Ann Linehan

Elkhorn

Elected 2016, 2020

402-471-2885

llinehan@leg.ne.gov


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John Lowe Sr.

John Lowe Sr.

district 37

John Lowe Sr.

Kearney

Elected 2016, 2020

402-471-2726

jlowe@leg.ne.gov


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John McCollister

John McCollister

district 20

John McCollister

omaha

Elected 2014, ’18

402-471-2622

jmccollister@leg.ne.gov


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Mike McDonnell

Mike McDonnell

district 5

Mike McDonnell

omaha

Elected 2016, 2020

402-471-2710

mmcdonnell@leg.ne.gov


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Terrell McKinney

Terrell McKinney

district 11

Terrell McKinney

omaha

Elected 2020

402-471-2612

tmckinney@leg.ne.gov


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Adam Morfeld

Adam Morfeld

district 46

Adam Morfeld

Lincoln

Elected 2014, ’18

402-471-2720

amorfeld@leg.ne.gov


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Mike Moser

Mike Moser

district 22

Mike Moser

Columbus

Elected 2018

402-471-2715

mmoser@leg.ne.gov


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Dave Murman

Dave Murman

district 38

Dave Murman

Glenvil

Elected 2018

402-471-2732

dmurman@leg.ne.gov


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Rich Pahls

Rich Pahls

district 31

Rich Pahls

omaha

Elected 2020

402-471-2327

rpahls@leg.ne.gov


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Patty Pansing Brooks

Patty Pansing Brooks

district 28

Patty Pansing Brooks

Lincoln

Elected 2014, ’18

402-471-2633

ppansingbrooks@leg.ne.gov


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Rita Sanders

Rita Sanders

district 45

Rita Sanders

Bellevue

Elected 2020

402-471-2615

rsanders@leg.ne.gov


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Julie SLAMA

Julie SLAMA

district 1

Julie SLAMA

Peru

apt. ’18, Elected 2020

402-471-2733

jslama@leg.ne.gov


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John Stinner

John Stinner

district 48

John Stinner

Small amount

Elected 2014, ’18

402-471-2802

jstinner@leg.ne.gov


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Tony Vargas

Tony Vargas

district 7

Tony Vargas

omaha

Elected 2016, 2020

402-471-2721

tvargas@leg.ne.gov


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Lynne Walz

Lynne Walz

district 15

Lynne Walz

Fremont

Elected 2016, 2020

402-471-2625

lwalz@leg.ne.gov


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JustinWayne

JustinWayne

district 13

JustinWayne

omaha

Elected 2016, 2020

402-471-2727

jwayne@leg.ne.gov


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Matt Williams

Matt Williams

district 36

Matt Williams

Gothenburg

Elected 2014, ’18

402-471-2642

mwilliams@leg.ne.gov


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Anna Wishart

Anna Wishart

district 27

Anna Wishart

Lincoln

Elected 2016, 2020

402-471-2632

awishart@leg.ne.gov


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Reach the writer at 402-473-7248 or dwalton@journalstar.com.

On Twitter @LJSdon

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