LINCOLN- Backers of a dramatic change in state taxation announced changes to their proposal as they launched a petition drive to place a “consumption” tax plan before Nebraska voters in 2024. Speakers at a press conference said that a tax on consumption would fix the state’s “broken” tax system, reduce cost by eliminating property tax-related offices, and make Nebraska a more attractive place to live.

“Our state has operated under a broken tax system since 1967,” said State Sen. Steve Erdman of Bayard, a leading proponent, referring to when the state first approved state sales and income taxes. The head of the Nebraska Chamber of Commerce, meanwhile, said that while the organization would look at the new changes in the proposal, a consumption tax has been clearly “unacceptable and dangerous” in the past.

The consumption tax idea, which has failed to advance in past years, would eliminate state income, sales and inheritance taxes, as well as the current state aid to K-12 education program, and replace it with a tax paid on all retail purchases. Senator Erdman said there are still many areas that need to be worked out, but assured that a large amount of time between now and 2024 will be sufficient to make decisions.

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