LINCOLN- In a week full of large announcements from Governor Pillen added another large announcement. He unveiled his historic tax cut plan that aims to make the state very competitive with surrounding states. The package includes a gradual reduction in state personal and corporate income tax rates to a flat 3.99% and a shift in the funding of community colleges off property taxes.

It also would adopt a new way of valuing agricultural property based on the land’s income-producing potential and would limits increases in ag land valuations for tax purposes. In addition, state lawmakers will be asked to accelerate, and make immediate, the elimination of state income taxes on Social Security. Last year, the Nebraska Legislature passed a bill to phase out such taxes over a period of years.

“We in Nebraska have to compete better with our neighbors. That’s really a key piece,” Pillen said at a press conference with several state senators standing behind him. The newly elected governor said that the tax cuts, which amount to $720 million in income tax reductions alone, would place the state among the 15 lowest nationwide in taxing income, as calculated by the Tax Foundation’s business climate rankings. Several have dubbed the plan as bold.

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