News Conference Call: LB461 Will Grow State & Family Budgets

NEWS CONFERENCE CALL with the Platte Institute 

UPDATE: The time of tomorrow’s news conference call has been changed to 1:00 p.m. Central Time.

Download file LB461 Policy Brief
Download file LB461 Analysis

Contact: Adam Weinberg
(402) 452-3737
aweinberg@platteinstitute.org

Sarah Curry to Discuss Analysis of State Revenue Under LB461
State Budget, Family Budgets Will Both Grow by Billions Under Plan

OMAHA, NE
(April 17, 2017) – With the first round of debate on LB461’s property and income tax reforms scheduled for Friday, the Platte Institute is releasing an analysis of what the state budget picture would look like if the Nebraska Taxpayer Reform Act cut taxes in Nebraska every year for the next decade. Because the plan requires state revenue projections to meet certain growth targets over the same period of time, the result would benefit both taxpayers and the state budget.

A news conference call on the analysis with Platte Institute CEO Jim Vokal and Policy Director Sarah Curry will be held Tuesday, April 18, 2017 at 1:00 p.m. Central Time. To call in, dial (605) 475-4000, Access Code: 106202#. The call may be recorded for broadcast and will include Q&A.

A copy of the policy brief along with a spreadsheet of the analysis is attached.

If adopted, LB461 would be the most comprehensive reform to Nebraska’s tax structure since the 1980s. In addition to introducing an income-potential basis for assessing agricultural property, the plan would suspend specific tax credits and use revenue growth triggers to fund reductions in Nebraska’s personal and corporate income tax rates, while also expanding the state’s Earned Income Tax Credit.

Revenue growth triggers enable tax rate reductions without making cuts to state spending by dedicating a portion of new state revenue growth to tax reform as long as state revenues meet certain benchmarks. In recent years, revenue triggers have been used in tax reform efforts in about a dozen states and the District of Columbia.

Under LB461, the trigger for most of the personal and corporate income tax rate cuts would be 3.5 and 4 percent projected annual General Fund revenue growth, respectively. In any given year, tax rates would be reduced approximately 0.1 to 0.2 percentage points, respectively, each time a trigger was met, until reaching a top rate of 5.99 percent.

The Tax Foundation testified to the Legislature’s Revenue Committee in February that these triggers built into LB461 would be “the most cautious yet adopted by any state,” and noted in a recent review that the bill represented significant tax reform that aligned with many of the previous recommendations the research organization made for changes in Nebraska.

To arrange an interview about LB461 please contact Adam Weinberg at (402) 452-3737 or at aweinberg@platteinstitute.org

The Platte Institute advances policies that remove barriers to growth and opportunity in Nebraska.

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