LINCOLN- Over the past few weeks, Gov. Jim Pillen has indicated at a handful of town hall events that he is steadfast in his promise to reduce property taxes in the state by 40% by expanding the sales tax base during a special legislative session this summer. Creighton economics professor Ernie Goss said high property taxes are indeed hurting economic growth in Nebraska.
Goss went on to say that reducing property taxes and expanding sales taxes would result in faster economic growth, while benefiting the rich and poor alike. "The problem I hear in Nebraska is everyone keeps talking about fairness, and they don't talk in terms of growth," said Goss, "Let's talk about growth." Goss said he supports Pillen's approach, but has concerns about the plan's implementation.
Eric Thompson, chair of the economics department at UNL, said there is no specific tax that should be eliminated. "Since sales tax and income tax are levied at the state level, state government should focus on lowering income and sales tax rates," he said. Thompson finished by saying he believed local government should be responsible for reducing the amount of property tax they levy.
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