Nebraska Governor Jim Pillen has proposed a tax plan aimed at cutting property taxes in half, with the intention of reducing the burden on homeowners and farmers. The plan would expand the state sales tax to include items like candy, soda, and services such as pet grooming and auto repairs. Additionally, it would have the state cover the $2.6 billion cost of funding K-12 public schools, which is currently funded through local property taxes.
While Pillen argues that the plan would create a more balanced tax system, critics are concerned that it would disproportionately shift the tax burden to low-income residents. OpenSky Policy Institute, a tax watchdog group, is calling for more deliberation on such a significant change to the tax system.
Property taxes in Nebraska have risen significantly in recent years, contributing to the urgency in addressing the issue. However, not all Republicans are in favor of Pillen’s plan, with some, like State Senator Ray Aguilar, arguing that it doesn’t go far enough in reducing taxes.
Ultimately, the proposed tax plan is facing skepticism and opposition, with concerns about its impact on working-class residents. As the special legislative session approaches, it remains to be seen whether Governor Pillen will be able to garner enough support to push the plan through.
Source
Photo credit www.washingtonpost.com
