NFIB

A bill to reduce Nebraska's corporate income taxes for small businesses is on the agenda and could be debated on the floor of the Legislature in the next few days. 

Legislative Bill 888, introduced by Sen. Carroll Burling (Kenesaw) and designated a priority bill by Sen. Scott Lautenbaugh (Omaha), would raise from $50,000 to $100,000 the income threshold for the state's highest corporate tax rate. The bill would apply to all tax years beginning on or after January 1, 2008. 

NFIB supports LB 888, which would mark the first change in the corporate income tax threshold since 1975. Nebraska currently has the second-highest nominal rate among surrounding states with a corporate income tax. 

Please contact your senator to express your support of LB 888.

Check the Unicameral's Web site for senator contact information.

Appropriations Committee budget proposal unveiled
The Appropriations Committee has submitted its budget plan to the legislature for consideration.

The plan attempts to hold the line on general fund spending at virtually the same level that was approved by lawmakers last session. Under the proposal, state spending is projected to grow at an average of 4.6 percent over the two-year budget period.

The Appropriations Committee made significant revisions to its recommendation following the State Forecasting Board report, which predicted that tax revenues for the 2007-09 budget cycle would be approximately $68 million lower than previously projected. 

The Appropriations Committee's proposal would provide for reductions in the growth of aid to schools, which would still rise by 8.3 percent. The measure also would increase fuel taxes by about one cent and includes $14.5 million in additional funds for the Roads Department to cover increases in salaries and health insurance.

The Committee held fast in rejecting requests to raid the state's cash reserve fund for various legislative proposals, including funds for tax relief, increased funding for roads, pay raises for teachers, renovation of Omaha's Rosenblatt Stadium and payment of farmers in Western Nebraska who relinquished their irrigation rights in 2007. The cash reserve fund is now projected to be about $489 million on June 30, 2009, compared to the previous estimate of $542 million.