LINCOLN- Sen. Lou Ann Linehan of Elkhorn says there should be plenty of revenue to fund a slate of tax cuts and finance new spending priorities during the 2021 session. She and some members of the Legislature’s Revenue Committee, of which Senator Linehan is Chair, held a press conference to tout the proposals for tax cuts which voted out for debate by the full Legislature. Included is a long-discussed phase out of state income taxes on Social Security income. Other bills include exemptions for military retirement pay from income taxes, end taxation of residential water bills and lower the state's inheritance tax and corporate tax rates.

Just before, the Appropriations Committee released its proposed $9.7 billion, two-year budget which includes an extra $211 million for state lawmakers to devote to tax cuts or spending initiatives.

The Open Sky Policy Institute stated in a release that these proposals could cause "delayed-onset fiscal problems", depleting state revenue by $300 million over the next two years. “The combined impact of all of these measures would likely necessitate major cuts to schools, health programs and other services that are essential to our state, our residents and our economy,” Open Sky stated in a press release.

The full floor debate on this issue should come in the next few weeks, following conclusion of the state’s biennium budget debate.

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