LINCOLN THINK TANK QUESTIONS $230 MILLION TAX BREAK FOR NEBRASKA BUSINESSES

LINCOLN — A Lincoln-based think tank on Monday questioned the wisdom of allowing coronavirus-related tax changes that would effectively provide a $230 million tax break for businesses, a reduction that has the backing of the Nebraska Chamber of Commerce.

The Open Sky Policy Institute said Nebraska has more pressing needs than granting such a big state income tax cut to businesses, citing the need to retain state tax revenue for other priorities. The Open Sky opinion piece puts the organization in the same camp as State Sen. Mike Groene of North Platte — with whom it often doesn’t agree — who has also called for the state to temporarily “decouple” from the federal tax code so that the tax break doesn’t go into effect.

Groene, the head of the Legislature’s Education Committee, recently said the $250 million would be better spent, and would benefit more people, if it was used to reduce local property taxes by increasing state funding of K-12 schools.

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