Cong. Adrian Smith

Congress is again plunging into the payroll tax cut debate. A compromise was reached in late December on a two-month extension, which will expire later this month.

Nebraska Third District Congressman Adrian Smith says it’s a distraction to get back into this debate.

“It’s unfortunate we couldn’t do the one-year (extension) back in December so we could spend time working on other ways to grow our economy and reign in spending,” Smith says. “Long term, we need to make sure we have the right items in place so we can not put our country into so much debt in order to accommodate this payroll tax reduction.”

Smith says he could support the tax cut, but only if it is not made permanent.

“We need to emphasize that this is temporary,” he says. “If this becomes a permanent situation, it just raises more spending issues.”

Smith says he would like to see the debate expand into tax reform.

“We are tackling tax reform and we need to make sure that we don’t continue to narrow our bace in a way that is causing fiscal alarm and growing our debt,” he says.

Jerry Oster, WNAX, Yankton

Sen. Deb Fischer of Valentine

A Nebraska state senator wants to put the brakes on an expansion of occupation taxes in the state. Senator Deb Fischer’s bill (LB 745) was heard by the Revenue Committee on Wednesday.

The bill proposes requiring a public vote before implementation of any new occupation tax. Fischer, a Republican candidate for the U.S. Senate seat now held by Democrat Ben Nelson, proposes requiring a specific purpose for an occupation tax, as well as a sunset date.

Fischer’s bill would also require that any changes to existing occupation taxes, be put before a public vote.

Richard Baier, of the Nebraska Chamber of Commerce and Industry, supports Fischer’s measure. He says there’s been an increase in cities using occupation taxes.

Lynn Rex, the Director for the League of Nebraska Municipalities questioned whether local representative government should have to seek a public vote on every major issue. She says occupation taxes help cities handle the costs of doing business

Opponents of Fischer’s bill fear that taking away occupation taxes would lead to some cities increasing property taxes to make up the difference.

Those same cities have faced state aid reductions and have limits on local sales taxes and property tax rates.

Occupation taxes have been authorized in Nebraska, since the late 1800s.

Doug Kennedy, KWBE, Beatrice