As you may know, for the past several weeks I have been delineating the ten rights of the Nebraska Taxpayer’s Bill of Rights, which I will include in a bill for the consumption tax in January. So, today I would like to talk about the eighth right in the Nebraska Taxpayer’s Bill of Rights.

The eighth right says, “Those citizens and legal residents of the State of Nebraska living at or below the federal poverty rate shall be absolved of making any positive net contributions (pay no taxes) to the consumption tax revenues of this State.”

It is an essential component of the consumption tax that those living at or below the federal poverty rate should never have to pay taxes. For this reason, the consumption tax bill that I will introduce in January will come with a monthly allowance for every individual or family living in Nebraska, which covers the consumption tax up to the federal poverty rate. The monthly allowance will ensure that no one living at or below the federal poverty rate in Nebraska will ever have to pay taxes.

As a general rule, the most preferable tax system is the one which frees the lowest wage earners in society from ever having to pay taxes. While those living at or below the federal poverty rate in Nebraska will still be required to pay the consumption tax on services and new goods, they will do so with the State’s dime. In other words, the State of Nebraska will only keep those consumption taxes paid out by an individual or a family on services and new goods above the federal poverty rate.

Some people may be wondering why every person and every family in Nebraska should receive the monthly allowance. One reason for this is a matter of fairness. For instance, when the Harvard University political philosopher, John Rawls, wrote about his theory of justice, he said, “…inequalities of wealth and authority are just only if they result in competing benefits for everyone, and in particular for the least advantaged members of society.” By giving the monthly allowance to each individual or every family, we will ensure that the system remains fair for everyone.

Another reason for giving the monthly allowance to everyone living in Nebraska is that it protects the privacy of the citizens of our State. The Nebraska Department of Revenue does not need to know how much money anyone makes, period. By giving the monthly allowance to everyone, it removes any burden the State may have of knowing how much income any particular person or any family makes in a given month or in a given year.

The monthly allowance will help us put an end to poverty in our state. The monthly allowance will help to ensure that those entering into the workforce for the first time will do so from a level playing field. Those individuals who leave the family nest but who are employed in a low wage job won’t have to carry the burden of paying taxes to the State. This is because the State won’t begin keeping the consumption taxes of low wage earners until they begin spending at a level above the federal poverty rate.

The consumption tax is the most ideal tax system for low wage earners. Because the consumption tax will spare our lowest wage earners from making any positive net contributions to the State’s coffers, Nebraska will become the envy of all other states in the Union.