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Gov. Heineman Comments on Liberal Coalition That is Against Middle Class Tax Relief

Press Release

Location: Lincoln, NE

Today, Gov. Dave Heineman responded to a liberal coalition that is against tax relief for hard-working, middle class taxpayers.

"These liberal interest groups support higher taxes on middle class Nebraskans," said Gov. Heineman. "They want to increase government spending while I want to lower taxes for Nebraskans. As I have said repeatedly, the choice is between providing tax relief for hard-working, middle class taxpayers or more spending for special interest groups. I will continue to fight for the taxpayers."

Under LB 970, the Governor's $327 million tax relief package, individual income tax relief will be provided by lowering rates and expanding brackets, supporting the middle class, with 75% of the relief going to Nebraskans with combined household incomes up to $150,000 annually. The tax relief package includes income and corporate tax relief, as well as elimination of the inheritance tax.

The proposal helps small businesses grow by lowering the top corporate tax rate to the same rate as the top individual rate. The repeal of inheritance tax is considered the final step in the elimination of Nebraska's death tax. In 2007, as part of the largest tax relief package in the history of the state, the estate tax was repealed. However, Nebraska remains one of only 8 states in the United States to still have an inheritance tax, which hurts Nebraska significantly in tax competitiveness rankings.

LB 970 was introduced on the Governor's behalf by state Senator Abbie Cornett of Bellevue. Gov. Heineman applauded her vision and leadership on this issue critical to Nebraska's future.

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