Economist Ernie Goss

Nearly everyone in the country would see changes under President Trump’s proposed tax code plan.

Creighton University Economist Ernie Goss says the plan calls for reducing the number of tax brackets and preserve certain deductions.

Goss says, “Doubling the exempted income, going from seven rates to three rates and eliminating these Christmas tree of deductions. We are going to go down to two deductions - that would home mortgage interest and charitable contributions and getting rid of deduction for state and local taxes.”

Goss says having many deductions is good for politicians, economists and lobbyists but not good for the economy and average Americans.

When it comes to lowering the corporate tax rate to 15%, Goss says that would be a huge boost to the economy.

Opponents say the changes would cause the deficit to increase before the effects of this plan would kick in. Goss agrees but says there one portion of the plan that is very “digestible” and could be implemented yet this summer. Goss says, “Cut the tax rate on earnings held overseas by U.S. corporations. That repatriation tax, taxes on repatriation earnings. That would bring in between $300 to $400-billion of income to the treasury at almost no cost to the U.S. economy.”

President Trump’s proposal would also lower the capital gains tax and repeal the inheritance tax.

Nebraska’s unemployment rate dropped slightly in March to 3.1%.

The Nebraska Department of Labor has announced the state unemployment rate dropped by two-tenths of a percent last month.

“Nebraska saw normal seasonal employment fluctuations in March,” Commissioner of Labor John Albin said in a written statement released by his office. “Total nonfarm employment topped 1 million again, the 13th consecutive month that Nebraska has hit this mark.”

Nonfarm employment, according to the department, was 1,013,970, up 8,364 over the year and up 4,830 over the month.

Mining and construction saw the biggest job gains in March, followed by the categories of leisure and hospitality; and trade, transportation, and utilities.

The unemployment rate in Omaha fell two-tenths of a percent to 3.2%. Lincoln saw the same improvement with an unemployment rate in March of 2.6%. In Grand Island, the unemployment rate dropped by four-tenths of a percent to 3.3%.

The national unemployment rate stands a 4.5%.

On Tuesday, President Trump signed an executive order “Buy American, Hire American First”. While everyone may like the sound of this the reality is contractors can get materials and labor less expensive from foreign sources and that keeps tax dollars down. Creighton University Economist Ernie Goss says there is no assurance from Washington D.C. that steps are being taken to keep those taxes from going up.

Goss says, “Do we really want to turn over our economy to economists, lawyers and politicians looking over purchasing managers shoulders to see how they are buying effectively? Purchasing managers buy the the best product at the cheapest price, national security issues aside. Otherwise, buy the best at the best price.”

The attention last November was to create more jobs and keep companies from relocating to other countries. Goss says that will raise costs and slow the economy.

Goss says, “We need to be manufacturing science and technology products in Minneapolis and Omaha. We don’t need to bring back baseball manufacturing from Costa Rica and that is what we are essentially talking about. When politicians and economists collide, politicians usually win and that is what we are seeing here.”

Consumer confidence seems to be gaining steam in Nebraska, matching the confidence among Nebraska businesses.

University of Nebraska Lincoln Bureau of Business Research Director Eric Thompson says the bureau’s latest monthly survey shows consumer confidence is strong in Nebraska, while business confidence remains very strong.

“We’ve had a continuing economic expansion for a number of years,” Thompson tells Nebraska Radio Network affiliate KLIN. “It does take a while before people start to feel the improving economy in their own lives and we may be reaching the point now in our recovery where it’s not just businesses feeling more confident, but also households as well.”

Thompson says this is the first time researchers have found growing consumer confidence since they began taking the survey in 2015.

“And what that says is that more households see their financial situation improving in the next six months than see it deteriorating,” according to Thompson. “Also that more households have their financial situation improving over the last six months.”

Thompson cautions time will tell whether the results of the March survey signal an emerging trend. Thompson says it appears consumer confidence is rising with the improvement in the state job market.

Consumers still have concerns, according to Thompson, mainly about the rising cost of living, especially with health care and taxes.

Jane Monnich, KLIN, contributed to this story.

A huge economic boost for Nebraska was announced today in Papillion. Facebook is building a new data center on a 146 acre site along Highway 50. Mayor David Black says Facebook is a welcome addition to the community. He says, “There will be hundreds of construction jobs that will be created out of this that will have direct local impact. Those are putting people to work. Highway 50 and Highway 370 is really important now for manufacturing, industrial and headquarter industries. That is jobs and industries critical to the entire state.”

Facebook Vice President of Infrastructure Tom Furlong says it has been a pleasure working with Nebraska in making their data center location selection. He says Facebook is grateful that Governor Ricketts traveled to Menio Park, California last October to help them fully understand the benefits of locating in Nebraska. Furlong says Facebook is also to have amazing partners in Nebraska that include the Greater Omaha Economic Development Partnership, Sarpy County Economic Development, Papillion, Sarpy County and OPPD.

There will be a total of four new buildings that will make up the new data center. Two will be on each side of the highway and they will connect by tunnel. When constructed, Facebook will employ about 100 people.

After the failure of the health care bill, President Trump’s administration is now focused on taxes. There are members of Congress that are concerned with spending portion and the tax cuts at the same time. Creighton University Economist Ernie Goss explains this is nothing to be overly concerned about.

Goss says, “Repatriation of earnings is a painless cut in taxes. There is about $2.6-trillion abroad that is untaxed right now and the companies are not bringing it back here to be taxed at 35% so we could cut that, a temporary tax cut in 2017 and bring back a significant amount of money for the federal treasury. It would almost be a painless change.”

The stock market took a slide for eight days before a rebound on Tuesday and that is making investors uneasy. Goss says a lot depends on the corporate tax reform. That will impact both individuals and corporations. He says, “If Congress and the president fail to get that through, I think we will move sideways or down for 2017. That has been baked in, at least a portion of that, so we really need that right now.”

When it comes to the local level, Goss still predicts a down year for the agricultural sector but that will turn around.

An economic indicator tracked by the University of Nebraska projects strong growth for the state the remainder of this year.

Bureau of Business Research Director Eric Thompson at the University of Nebraska - Lincoln says the latest leading economic indicator is trending upward.

“It’s two consecutive months of a sharp increase in the leading indicator both January and February, which suggests that the growth will pick up in the Nebraska economy about mid-year,” Thompson tells Nebraska Radio Network affiliate KLIN. “We should see strong growth now in the second half of 2017.”

Business leaders responding to the February survey expressed a very positive outlook, both for increasing sales and for hiring over the next six months.

Unemployment insurance claims fell for the second straight month in February. The value of the dollar fell during February, making Nebraska exports more affordable overseas.

Thompson says even the state agricultural economy is showing signs of re-emergence, with farm prices which have been in a big slump, stabilizing.

The bureau reports that the indicator, a composite which predicts economic growth over the next six months, rose by 2.08 percent in February after rising by a revised 1.76 percent during January.

The full report can be found by clicking here for the UNL Bureau of Business Research.

Jane Monnich, KLIN, contributed to this article.

The Nebraska economy began the new year as it ended the old year.

The state Department of Labor reports the state unemployment rate in January was 3.3%, the same as the rate in December.

Nonfarm employment, according to the department, totaled 1,003,072. Jobs in the service industry experienced the strongest growth in January.

The unemployment rate in Omaha in January was 3%; 3.1% in Lincoln; and 5.9% in Grand Island.

Nebraska has taken a hit nationally, falling into a 9th place tie with Iowa as a number of states have shown economic improvement in 2017.

Nationally, the unemployment rate is at 4.8%.