LINCOLN — The third time was the charm Wednesday, March 30 for a massive tax cut proposal in the Nebraska Legislature. The package failed to advance on two occasions last week until enough votes were gathered to overcome a filibuster on Wednesday evening. The bill was subsequently advanced on a 44-0 vote.

After undergoing intense amending, the final version includes reductions in state individual and corporate income taxes, the phasing out of taxes on Social Security checks, and roughly $395 million in extra property tax credits. In sum, it would cut state taxes by about $900 million which would be a record for the state. Critics claim the tax cuts will reduce state tax revenue to the point of harming education, road construction, and other state services.

State Sen. Lou Ann Linehan, who constructed much of the proposal, said it is an "important package" that would make Nebraska more competitive with its neighbors.

Critics point out the tax cuts do not benefit the middle-class families that need them most. Sen. Wendy DeBoer said couples earning less than $60,000 would see no benefit. Other opponents take issue with the corporate tax breaks that benefit primarily the wealthy and out-of-state corporations.

“I have no problem with tax cuts for people. I have a problem with tax cuts for out-of-state corporations,” Sen. Megan Hunt said.

When fully implemented the measures are estimated to cost the state $900million in tax revenue each biennium.

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