Veterans have joined Governor Heineman in supporting the elimination of the state income tax.
During a news conference at the Capitol just hours before legislative hearings on the proposal, the Nebraska Veterans of Foreign Wars threw its support to Heineman’s tax plan.
State VFW Commander Dave Beran stated that eliminating the state tax on military pensions would attract more military retirees to the state.
“To me it wasn’t that big a deal to come back and pay state taxes in Nebraska,” Beran said. “A lot of our younger veterans now are going to other places to live, because it’s cheaper. You don’t see as many veterans coming back to Nebraska.”
The governor proposes offsetting the loss of individual and corporate income tax revenue by eliminating $2.4 billion in sales tax exemptions. A legislative hearing on LB 405 will be held this afternoon at the Capitol.
The bill would exempt military retirement income and Social Security income from state taxation.
State Department of Veterans Affairs Director John Hilgert stated veterans see the measure as good for the future of the state.
“We fought for the future, not for the pass and that’s why we support this bill. We want people to come to Nebraska and come home to Nebraska,” Hilgert stated.
AUDIO: Gov. Dave Heineman holds news conference to announce the VFW’s endorsement of his tax proposal. [4 min.]