by Joseph Henchman, Scott Drenkard
October 03, 2013
Nebraska performs well—often in the top ten—on a number of broad surveys of economic performance and broad quality of life issues. However communications with business leaders, policymakers, and other stakeholders in the state reveal strong concerns. Nebraska’s top income tax rate and corporate tax rates are high for the region and for the revenue they collect; high corporate tax rates have led to increasing demands for generous tax incentives to counter the high corporate tax rate; property taxes are a concern but there is strong support for retaining local control over local spending priorities. Nebraska’s economic performance would make most states envious, but its tax system is middle-of-the-pack. We have isolated components of Nebraska’s code ripe for reform. The approach we outline would result in an equitable and simplified tax system for everyone that would promote long-term economic growth and boost job creation.