Debate Over Tax Reform Heats Up
Governor and mayor disagree on tax reform
Debate Over Tax Reform Heats Up Video by kmtv.comvideo
Omaha, NE -Two high profile elected leaders going head to head over taxes and it seems everyone is caught in the middle.
Nebraska Governor Dave Heineman will testify Tuesday on his proposal to eliminate state income taxes. The governor's plan would also eliminate sales tax exemptions on many products and services.
That's what has many businesses and organizations fired up. Mayor Jim Suttle calls the tax reform package unfair, "I will not support a proposal that raises revenue by taxing prescription drugs, nonprofits, churches, and students. This is a regressive tax shift that burdens Omaha citizens, nonprofits, and businesses.”
The Nonprofit Association of the Midlands is pleased Mayor Suttle came forward. "Non-profits are the first place money leaves and the last place money comes back," said Anne Hindery, Executive Director of the association.
Action 3 News sent a copy of Mayor Suttle's comments to the governor's office. They say there are fundamental differences in philosophy between the mayor and governor and slammed Suttle for raising taxes in Omaha.
Many non-profit groups are concerned the people they help will end up on the losing end if the Legislature passes the tax reform bills. Governor Heineman's office says that's categorically untrue and non-profits stand to benefit from the elimination of the personal income tax because people will have more money to donate to charities.
The Omaha Chamber of Commerce and the AARP will also oppose the tax reform plans.