LINCOLN- Gov. Pete Ricketts took a victory lap Wednesday with supporters as he signed into law a comprehensive tax cut bill that is projected to provide $948 million in tax breaks a year by 2028.

During a ceremony in the State Capitol Rotunda, Ricketts said Legislative Bill 873 would add up to $3.4 billion in cumulative tax relief by 2027.

“It takes a lot of folks to get a historic bill like this over the finish line,” he said, as 25 state senators, along with legislative staffers and representatives of major business and farm groups looked on.

Opponents, led by State Sen. John Cavanaugh of Omaha, said the tax cuts primarily benefited wealthy Nebraskans and out-of-state corporations and granted no income tax breaks for couples earning less than about $60,000 a year.

Only Iowa, among Nebraska’s neighbors, has a higher top rate. But the Hawkeye State recently moved to reduce its state income taxes to 3.9%.

Under LB 873, Nebraska’s top income tax rate will drop to 5.84% after five years. In addition, the state’s top corporate income tax rate, now 7.81%, would fall to 5.84% by tax year 2027, which proponents said creates parity with small businesses.

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