LINCOLN- The Nebraksa Legislatures Revenue Committee moved Governor Pillen's tax package out of committee. The much-amended LB754 moved out of committee on a 7-1 vote. State Sen. John Arch, the Speaker of the Legislature, said he planned to bring up the tax bill and an accompanying bill aimed at reducing property taxes for floor debate, “sooner rather than later.”

Senator Linehan said she believes the 33 votes needed to pass the bill are present in the body. She said Nebraska needs to cut its income tax rates to become competitive with its neighbors in attracting jobs and keeping people from moving away. Linehan pointed to Iowa's adoption of a flat income tax rate and said Nebraska must start moving forward in a similar capacity.

Under LB 754, the state’s top individual and corporate income tax rates would be dropped to 3.99% by tax year 2027. The top two brackets are now 6.8% and 6.27%. The projected cuts will reduce state revenues by $735 million a year by 2028-29. The package had three bills amended into it to increase support. Those bills are LBs 318, 641, and 38.

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