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By Omaha Alliance for the Private Sector
Recently, Governor Heineman announced a proposal to eliminate both corporate and personal income tax and many sales tax exemptions in Nebraska. This bold new plan is long overdue in a state with prohibitively high taxes, particularly compared to the surrounding low tax states.
Nebraska needs to reposition itself not only for regional competition, but for global competition, as well. And, like it or not, this Great Recession is reshaping the local, national, and world-wide economy for all. Individuals, localities, and states must change with the times or go the way of a Detroit or the travel agent (with no offense to either – these are just tough times).
By restructuring the tax policy in Nebraska, the Governor and the legislature can reposition Nebraska for future growth. We must be a state that retains our brightest graduates and attracts people and businesses to live, work, and stay here. Currently, that is not happening as much as it should. Our rural populations are dwindling and our cities populations have stagnated. It is time to throw off the policies of the nineteenth century and adopt the policies that work for these new economic times.
For instance, Nebraska has been in a rural vs. urban tug-of-war for years. This must stop. Agriculture and urban interests must learn to cooperate for the greater good of the whole state. Every interest, farming, manufacturing, corpor
To begin with, the Omaha-Lincoln corridor cannot pay the freight for the rest of the state. Smaller communities must deal with their declining populations realistically. No one wants the state to empty out and it is in everyone’s interest to maintain a balance, but efficiencies must be found in the rural areas. Likewise for agriculture – no one wants to abandon this time honored livelihood, but taxpayers cannot subsidize these operations.
Likewise, while Omaha may be entitled to keep more of its bounty, that city must put its economic house in order. You cannot expect the rest of the state to take cries of “poverty” seriously when you give your retiring superintendent a million dollars plus payout or pay 3 police chiefs under 50 years of age $10 million dollars in retirements. You cannot give teachers, firemen, and police $100,000 “sick bank” payouts. Nor can you give the Medical Center a huge payout for a Cancer Center that its own Foundation didn’t pay for and then claim you have no money for county services. This folly must stop.
Everyone, every industry and interest, must take a fair and realistic look at their own tax and revenue transgressions and true needs as we debate the Governor’s visionary new proposal. The Omaha Alliance is a collection of small business taxpayers – we must succeed for all to succeed. We advocate for good, smart government, which critically includes sound tax policies. This is especially true for “little guy” amid the big lobbying, special interests in this debate. There is concern over what these special interests may lose, but there is much more to be gained for all. (See, http://www.
The Governor is giving this state an opportunity to reexamine our statewide commitment to fair, sound, just taxation. We must take it. Let’s all roll up our sleeves and do the hard work of working through this discussion. It will benefit all of us in the long run. The Omaha Alliance wholeheartedly supports the Governor’s efforts.
Balaced
The governor’s proposal is rearranging the deck chairs on the Titanic. It might “look good” but it does nothing to address the real problem…too much government that costs too much. What we need to do is eliminate personal and corporate income tax, estate tax and property tax and replace that system with a retail consumption tax ala the Fair Tax. Combine that with a constitutional limit on the retail consumption tax rate and the existing balanced budget requirement and Nebraska will be forced to reduce and reorganize government at all levels in the state. We don’t need 93 counties, we don’t need hundreds of school districts, we don’t need an expansive HHS, etc., etc. Then and only then will Nebraska be positioned for global competition. Anything else is just another “rob Peter to pay Paul” scheme that ends up growing government both its cost and reach. Now that would be a bold plan to maximize economic growth. The current plan is crap that will either die the death of a “study group” or be so full of holes that property taxes will soar to cover new loopholes. The Omaha Alliance is a joke for signing on to this failure of a plan.
I have to say I pretty much agree with Oasis on this one. I doubt that Heineyman really wants to do anything about our HUGE Tax problem in this State at all, I think this is merely another one of his stunts to gain support from the People he has been screwing over for years now! I am sure he knows that NOTHING like this will ever pass!! I have made him and his hand picked cronies aware of the vast amount of waste and down right fraud ( In my opinion) as it relates to the over paid Public Screwell Administrators in Nebraska, They don’t care! They receive millions from the screwells for their Campaigns, plus they Screwells have WAY too much power and control so they are feared by greedy power hungry politicians like Heiney man! He has created the most corrupt, pathetic kiss my Heiney and I will kiss yours when the time is right. I am a Republican who did not and will support this guy for Dog catcher!!!
What do you know? HeineyMan ” Backs off ” His tax plan, HMMMM! I thought he would! He had NO intentions to lower the middle class tax rate, it was merely a political stunt!