Heineman fields questions on tax reform|
Posted: 02/07/13 08:34
Governor Heineman made his pitch to drastically change the state tax system during a legislative public hearing on his proposal to eliminate the state income tax. Heineman proposes to do away with the individual and corporate income tax and offset the loss in revenue to the state by eliminating certain sales tax exemptions. Heineman contends getting rid of the state income tax would improve the Nebraska economy. The legislature would have to eliminate 2-point-4(B)Billion dollars in sales tax exemptions to make up for the loss of the state income tax.
Opposition to Governor Heinemanís tax proposal is growing,
A representative of the Nebraska Chamber of Commerce tells a legislative committee that Governor Heineman's proposal to do away with the state income tax would hurt the state economy. John Cederberg urges the Revenue Committee to kill the bill. Cederberg says the proposals to eliminate sales tax breaks enjoyed by businesses and farmers would cripple manufacturing and agriculture in the state.
A master of the Unicameral's rules vows to tie up the legislative session if Governor Heineman's tax proposal comes to the floor of the Unicameral.
Senator Ernie Chambers of Omaha opposes the plan to eliminate the state income tax and even suggests the governor isn't serious about the proposal. Chambers says that if the Revenue Committee sends the bill to the floor for debate, it will deliver the session into his hands. The governor promises to keep pressing the proposal stating he has great respect for Senator Chambers, but the senator's opposition isn't surprising.