Nebraska Governor is latest to Propose ending State Income Tax


Nebraska Governor Dave Heineman on Tuesday became the second Republican governor in the last week to propose ending his state’s income tax, saying he wants to make Nebraska more competitive with its neighbors by eliminating the tax on both individuals and corporations.

Heineman said that if a complete elimination of the two taxes could not be passed, he would push to lower rates on both individuals and corporations. He promised to make up the lost revenue by reducing business exemptions to the sales tax.

Last week, Louisiana Governor Bobby Jindal said he wanted to eliminate all personal and corporate income taxes in his state. Louisiana’s personal income tax rate is 3.9 percent.

Nebraska’s personal income tax rate is 6.84 percent, higher than every one of its neighbors — Iowa, Kansas, Missouri, Colorado and Wyoming — according to a table accompanying Heineman’s remarks.