Greetings from the Nebraska State Capitol. We have concluded the fourth week of the 102nd Legislature, Second Session. We continue with the same schedule of early morning debate with committee hearings in the afternoon.

Legislative bill 970 has received a significant amount of attention since the Legislature convened, in particular the elimination of that tax. In a previous column, I articulated my thoughts on the elimination of the inheritance tax. However, the bill also contains another crucial element, $327 million in tax relief for Nebraskans.

LB 970, introduced by Senator Abbie Cornett on behalf of the Governor, would reduce individual and corporate income taxes. Under LB 970, each individual tax bracket would have a lower rate, the range of income would also be spread out more evenly. To put this into perspective, the Governor cited some examples that I would like to share with you. If you are a family of four with an adjusted gross income of $30,000, under LB 970, you would receive a 29.5% tax cut. If you are a single mom with two children and an adjusted gross income of $40,000, you will receive a 10.5% tax cut. If you are a family of four with an adjusted gross income of $75,000, you will get a 10.9% tax cut. If your adjusted gross income is $100,000, your tax cut will be 7.2%. However, if your adjusted gross income is $1,000,000, you will only receive a 2% tax cut. Cutting the individual income tax is beneficial to both Nebraskans and the State. Allowing the people of Nebraska to keep more of their hard earned money, will help grow the economy. If LB 970 passes, Nebraskans will have the ability to save more money for the future, to invest or spend it.

The corporate tax rate would be reduced to 6.7 percent. Currently, Nebraska has the highest corporate tax rate compared to all the states that border us, excluding Iowa. Both South Dakota and Wyoming do not even have a corporate income tax. I believe this places Nebraska at a disadvantage. A lower corporate tax rate would attract more businesses to the state, resulting in more jobs for Nebraskans and drawing in more employees to Nebraska. I believe this would also help current corporations and their employees. In most cases, costs associated with the corporate tax are passed on to workers through lower wages. It also affects the consumers who are buying the product, often times this tax is reflected in higher prices for those products. If a business is able to retain more money they are more likely to invest in their company and expand and hire new employees.

Lowering taxes will ultimately help Nebraska’s economy grow. It will attract new people to the state along with new businesses. It will allow for the expansion of current businesses and give people the ability to spend their money more freely. Nebraska is a great place to live. Ultimately, more people living in the state and paying taxes will generate more revenue for the state and local budgets.

If passed LB 970 would go into effect next year. Over the next 3 years, this would result in a $327 million tax relief for the citizens of Nebraska. I believe now is the time to implement tax relief for the hardworking people of this State. I commend the Governor and Senator Cornett for their diligence on this important issue.

As always if I can be of any assistance to you please do not hesitate to contact my office. My office phone number is (402) 471-2712 and my email address is lseiler@leg.ne.gov.

Greetings from the Nebraska State Capitol. We have completed the third week of the One Hundred Second Legislature Second Session. I must reiterate my statements from last week by thanking everyone for the friendly reception I have received. I am thoroughly enjoying my time at the Nebraska Legislature and am learning a lot.

Legislative bill 996, introduced by Senator Wightman, is a bill that has gained a lot of attention from the constituents in District 33 and Nebraskans from across the state. Currently Nebraska’s compulsory education law requires children to stay in school until they turn 18 or graduate from high school. However, there is a provision that allows 16 year olds to drop out of school if they have permission from their parents. LB 996 would repeal that provision making it mandatory for all children until the age of 18 or if they obtain a degree to stay in school.

This bill is well intentioned, I believe Senator Wightman’s goal is to help keep children in school. Every child in Nebraska is deserving of a quality education that will help them achieve their goals and lead them down a path to success. Even so, it is up to each individual child and their parents to take advantage of the education available. While I agree that its important for all Nebraskans to encourage children to attend school and graduate, removing the parent consent provision will not guarantee a kid will be successful.
I am also worried about the impact this bill will have on the other students who want to be at school and are there to learn and succeed. If this bill passes, a child who has no desire to be in school will be forced to attend. A disruptive child in a classroom is not conducive to all the other students.

I also foresee unintended consequences with this bill, among them a child violating the truancy laws, which could hinder a child’s transition from youth to an adult. While I am a firm believer that education is a gateway to success, forcing a child to stay in school is not the solution to the problem. The child wanting to be in school is the answer. How to accomplish this goal is the question.

The Education Committee held a public hearing on this bill earlier this week. We heard from many educators, parents, and concerned citizens. The number of testifiers during the hearing is proof this bill has generated strong opinions. I will continue to monitor LB 996.

As always I welcome hearing from you. Please do not hesitate to contact my office at (402) 471-2712 or lseiler@leg.ne.gov.