Cut Bill

The cards were placed clearly on the table in Lincoln last week, and now everyone can see who opposes a tax cut for Nebraskans.

found Sunday, February 12, 2012 at nptelegraph.com

Gov. Dave Heineman is waging an important battle to make Nebraska more competitive when it comes to attracting businesses to our state. As part of that effort, he appeared last week before a legislative committee to defend elimination of the inheritance tax, which it is estimated would reduce state revenues by $40 million to $48 million per year.

Heineman’s proposal was met with strong opposition at the hearing from county board members, county health workers, sheriffs (including our own Jerome Kramer), and surveyors, from around the state.

Kramer, who recently moved into a new county jail and sheriffs office, told state legislators that he has “no more rabbits to pull out of a hat” to make his budget work, and reported a 125-percent jump in jail inmates in the last seven months.

Kramer said he never hears people complain about inheritance, but he hears complaints all the time about property taxes.

That may be the case, but the sheriff should also know that difficult decisions and creative answers are better solutions than magic tricks. These solutions have been forced on private enterprise for years.

Heineman’s tax cut package, which is Legislative Bill 970 in the current session, would also reduce individual and corporate state income taxes by $131 million, in addition to eliminating the inheritance tax. The governor said the cuts are necessary to improve the business climate in Nebraska. The state recently moved up from 45th best to 30th best in a Tax Foundation rating of business climates, and “That’s good progress,” Heineman said, “but Nebraska is still in the bottom half of all the states.”

Joining the county officials and sheriffs in opposing the inheritance tax elimination were AARP, the state teachers union, the Democratic Party, and advocates for children and the poor. The all-too familiar charge was made that the cuts would benefit the rich more than the middle class, although it was estimated that if passed, the income tax cut for someone making $75,000 would amount to 11 percent, while someone making $100,000 would receive a 7 percent cut.

It has become painfully obvious over the years that any effort to do something about Nebraska’s notoriously high taxes will be met in Lincoln with loud screaming and the audible gnashing of teeth from those who favor the status quo. Around the state, however, we suspect taxpayers are saying, “Finally, someone is doing something about this problem,” and cheering the governor on.

The time has come to tackle this problem, and we applaud the governor for his efforts.

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