Update from Lincoln on tax bills
In an extremely busy week for NFIB, State Director Bob Hallstrom reports on the huge success of Small Business Day at the Capitol and testimony on some important tax measures.
NFIB submitted testimony on Legislative Bill 1097 before the Revenue Committee on February 13. Introduced by Sen. Burke Harr (Omaha), LB 1097 would reduce tax rates for all individual and corporate income taxpayers. The legislation would:
- for individuals, reduce the number of income tax brackets from four to three beginning in 2015 and increase the amount at which each tax rate takes effect
- phase in reductions in the state’s top individual tax rates from 6.84 percent to 5.9 percent by 2017
- index tax brackets annually to prevent “bracket creep”
- lower the state’s top corporate tax rate on corporate earnings in excess of $100,000, from 7.81 percent to 5.9 percent over the next three years.
LB 1097 is estimated to reduce tax revenues for state government by $140 million in the next fiscal year, with revenue reductions to increase to $404 million by fiscal year 2015-16 and $525 million by fiscal year 2016-17. However, the fiscal note prepared by the Department of Revenue does not account for increased investment and job growth. Senator Jim Smith (Omaha) has designated LB 1097 as his priority bill, but the Revenue Committee has yet to take action on the measure.
NFIB will present testimony before the Revenue Committee on two bills relating to inheritance taxes.
Legislative Bill 812-Repeal Of Inheritance Tax: Sen. Tom Hansen (North Platte) is the sponsor of LB 812 that would repeal the inheritance tax, effective January 1, 2015.
Legislative Bill 960-Inheritance Tax: Sen. Tom Carlson (Holdrege) has introduced a bill that would reduce the inheritance tax rate for Class II beneficiaries (uncle, aunt, niece, nephew) from 13 percent to 7 percent and reduce the tax rate for Class III beneficiaries (unrelated parties) from 18 percent to 9 percent for decedents dying on or after January 1, 2015.
Small Business Day
The 24th annual Small Business Day at the Capitol on February 18, co-hosted by NFIB, Nebraska Chamber of Commerce and Industry, the Greater Omaha Chamber of Commerce, the Lincoln Chamber of Commerce, Lincoln Independent Business Association and Nebraskans for Workers’ Compensation Equity and Fairness was a success with more than 50 small business owners in attendance.
Participants heard presentations from Gov. Dave Heineman; Speaker of the Legislature Greg Adams (York); Sen. Galen Hadley (Kearney), chairman of the Revenue Committee; and Sen. Dan Watermeier (Syracuse). NFIB State Director Bob Hallstrom provided a review of bills pending before the state legislature that are of significance to small business owners.
Previous 2014 Legislative Reports
From most recent down to first
Small Business Day at the Capitol speakers, clockwise from upper left corner: Speaker Greg Adams, Gov. Dave Henineman, Sen. Dan Watermeier and Sen. Galen Hadley.