Some presidential candidates have based their entire campaigns on the concept and now the idea of a flat tax is being introduced in the Nebraska legislature. Senator Tyson Larson, of O’Neill, is sponsoring the measure and tells the Revenue Committee that a flat income tax system is proven to work.
He says seven states are using the flat tax and their tax rates range from three to five-point-three percent — Colorado, Indiana, Pennsylvania, Illinois, Rhode Island, Massachusetts and Utah.
Larson says 23 countries have also moved to the flat tax, with good economic results. Most of the nations are in Eastern Europe which is that region’s fastest growing area. Larson attributes the region’s successes to the flat tax, when compared to Western Europe.
Seth Giertz, an assistant professor with the economics department at the University of Nebraska-Lincoln, says he sees several benefits from the flat tax.
Giertz says the bill would cut individual tax rates nearly in half while cutting the corporate rate by more than 50-percent, helping the state’s business climate and sending a positive signal nationwide.
After the hearing, Larson said he didn’t expect the bill to pass in the current session, but would lay the ground work for passage in the future.
Jerry Oster, WNAX, Yankton