Governor Heineman says Nebraskans need a tax break, but a state senator believes the governor hasn’t targeted the right tax.
The governor unveiled a $326.6 million tax cut package in his State of the State address. The majority of the tax package is a cut in individual income taxes. The governor proposes cutting the rates in each bracket and expanding all four brackets, for a total cut to individual income taxes of $273.7 million.
“Income tax has always been one that we have known needs to be restructured, because it’s unfair to Middle Class families,” Heineman tells Nebraska Radio Network.
Yet, Sen. Health Mello claims the governor’s proposal is misguided.
“My constituents in south Omaha, as well as constituents of other senators across the state, have been clamoring for property tax relief,” Mello tells Nebraska Radio Network.
Mello notes that the legislature ended state subsidies to local governments last year, causing cities and counties to consider raising property taxes to make-up for the loss of revenue. He contends property tax relief would benefit Middle Class families more than that governor’s proposed income tax cuts.
“If Sen. Mello wants to have an impact on property taxes in Omaha, he needs to run for the Omaha school board, the Omaha city council or the Douglas County board,” Heineman responds when asked to respond to the senator’s comment. “That’s where property tax rates are set, not at the state level.”
Heineman says the legislature ended aid to local governments to prioritize education funding.
Still, Mello contends the governor’s proposal doesn’t provide the tax relief he claims to want, relief for Middle Class Nebraska families.
“Unfortunately, I think his words don’t really match the policy he put forward,” Mello says.
AUDIO: Brent Martin reports [:45]
AUDIO: Brent Martin interviews Gov. Heineman on $326.6 million tax cut proposal [8:00]