LINCOLN- State Senator Steve Erdman proposed Legislative Bill 16 and complimentary constitutional amendments to allow Nebraska voters to weigh in on the EPIC Option consumption tax after a petition drive fell short of signatures for the November ballot. The EPIC tax plan seeks to replace state and local property, income, corporate, and inheritance taxes with a broader consumption tax, but it faces significant legislative hurdles despite support from the Nebraska Republican Party. At a recent hearing, most testimonies favored the proposal, but organized opposition was minimal.

EPIC supporters argue the current three-legged tax system, which includes income, sales, and property taxes, has been broken since its inception in the 1960s. They believe a consumption tax would be fairer and protect property rights, with testimony from farmers, ranchers, and homeowners highlighting the burden of rising property taxes. Despite this support, opponents, including Governor Jim Pillen and several organizations, argue that a consumption tax rate of 22% would be required to fund state and local services, a claim proponents dispute by suggesting a 7.5% rate would suffice.

With significant political and logistical challenges ahead, the future of the EPIC tax proposal remains difficult for supporters.

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