Some business owners say Nebraska taxes too much. They have lined up behind Gov. Pete Ricketts’ call to cut the top individual income tax rate.
A number of business owners joined the governor in a news conference in his public hearing room Monday to support his call to cut the top rate from nearly 7% to just under 6% over a number of years.
Bruckman Rubber manufacturer owner Jack Schreiner of Hastings said tax relief would allow him to invest more in his business.
“The only way we get money is to work our butts off to get the income to begin with and then we sit back and watch whatever the government takes out of it; that’s what we’ve got left to feed our families and to grow our businesses with,” Schreiner told reporters.
Bruckman employs 80 employees in Hastings, where is has operated for 55 years.
Schreiner and others point out many small business owners file their taxes as individuals, rather than as a business or corporation.
President Mike Mapes with The Alliance Group of Omaha, a professional employer organization, said he hears two main complaints from business owners: they cannot find enough workers and taxes are too high.
“In the United States, you’re allowed to vote with your feet and you go to where you believe that you have the highest economic opportunity for yourself,” according to Mapes. “So, the best and the brightest graduate from our universities and they end up going elsewhere. I think taxes are a major reason why they decide to go elsewhere.”
Legislative Bill 337 proposes to reduce the top individual income tax rate from 6.84% to 5.99% over a period of years. It would reduce the rate one percent per year as long as state revenue grows by at least 3 ½% in the fiscal year. The top tax rate starts at $29,831 for an individual.
AUDIO: Brent Martin reports [:55]