Governor Heineman Calls for Tax Reform
State of the State Address
Nebraska Governor Dave Heineman gave his State of the State today in Lincoln. The two major issues he discussed were tax reform and education.
Heineman said taxes are too high in Nebraska and the tax system needs to be modernized and transformed.
"Did you know the state of Nebraska provides $5 billion in sales tax exemptions? Nebraska exempts more than we collect," said Governor Heineman.
He is calling for an overhaul of Nebraska's tax system, saying the state needs to get rid of its individual and corporate income taxes and make up the lost revenue by stopping $2.4 billion in tax breaks for businesses.
"Without inidividual income tax and corporate income tax, there would be no income tax for working Nebraskans. Social security and military retirement would no longer be taxed. No tax on small business income," stated Heineman.
The Governor did not specify which tax breaks he wants to eliminate except to say his proposal would not tax food.
Another topic that was highlighted during the State of the State was education. Governor Heineman said he wants to make K-12 education a top priority with more funding and state aid.
Heineman's proposed budget also includes a two-year tuition freeze at the University of Nebraska and state colleges so more families can afford to send their children to higher education.
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