Gov. Dave Heineman says he expects comprehensive tax reform next legislative session.
The governor has signed three tax break bills into law, saying they represent small steps toward tax relief for Nebraskans. He adds he expects more next legislative session.
Heineman says broad tax relief starts with a close look at the current tax system.
“We have a tax code that was designed in the 1960s for the 1960s. We’re now in the 21st Century,” Heineman tells reporters during a news conference in his Capitol office.
Heineman says he wants a tax system that helps create high-paying jobs.
“At the end of the day, I want a modern tax code that is going to create more jobs for Nebraska’s young people and our Middle Class families,” Heineman says.
Heineman proposed the elimination of both the individual and corporate income tax this legislation session. To offset the loss of state revenue, the governor proposed eliminating about half of the sales tax exemptions the state grants.
The legislature, after hearing strong opposition during public hearings, balked at taking such a drastic step. Instead, the legislature approved creation of a special commission that will study the current tax system and propose changes for the Unicameral to consider during the next legislative session.
AUDIO: Brent Martin reports [:35]