LINCOLN- After the initial fiscal note was above the expected number, the income tax reduction package or LB754 will need to be to narrowed down. The Legislative Fiscal Office estimates that Legislative Bill 754 will deliver $3.89 billion in tax cuts over its first six years, nearly $900 million more than previously thought.

State Sen. Lou Ann Linehan of Elkhorn, the main sponsor of the bill, said that some of the tax cuts called for in the bill might have to be pared back so it fits within the state budget and so it matches, dollar-for-dollar, the tax relief provided by a package of property tax changes in a companion measure, LB 243. The official fiscal note is not calculated until the bill passes the first round of debate. Linehan did say she had some doubts about the accuracy of the fiscal note.

Sen. Linehan agrees that preserving the cuts in personal and corporate income taxes are the highest priority in LB 754, as well as eliminating state tax on Social Security. Under the bill, the state’s top personal income tax rate and corporate tax rate would gradually fall to 3.99%.

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