Decoupling tax benefits of federal CARES Act from Nebraska tax code a bad idea
FOR IMMEDIATE RELEASE
Contact: Bob Hallstrom, Nebraska State Director, [email protected]
or Tony Malandra, Senior Media Manager, [email protected]
LINCOLN, Neb., July 27, 2020—The state’s leading small-business association will join a chorus of other groups and individuals, today, urging the Nebraska Legislature’s Revenue Committee not to adopt an amendment to a bill that would decouple several tax benefits under the federal CARES Act from Nebraska’s tax code.
“Decoupling from the tax benefits associated with the CARES Act and imposing additional taxes on individuals and businesses will undermine the recovery of our economy by adversely impacting the ability of Nebraska to recover from the pandemic,” said Bob Hallstrom, Nebraska state director for NFIB. “With the economic challenges facing most Nebraska businesses, now is not the time to increase taxes.”
The Revenue Committee will meet today at noon in Room 1525 of the State Capitol. The decoupling amendment, 3093, is being considered for Legislative Bill 1074. Specifically, the proposed “decoupling” would raise state income taxes by:
- Removing the flexibility for small and pass–through business entities (e.g., LLC’s and Sub–S Corporations) which have incurred business losses in recent years to use those losses currently and create liquidity during the crisis
- Requiring retirees taking minimum distributions from their retirement plans to pay tax on distributions that are otherwise exempt under federal law
- Removing the increased charitable deduction limits for individuals and corporations, which were put in place by Congress to provide incentives for increased charitable giving to charitable organizations during the pandemic
- Removing the increased allowance of business net operating losses.
“The tax cuts adopted under the CARES Act were designed to provide cash flow and liquidity to individuals and businesses adversely impacted by the pandemic,” said Hallstrom. “This boost to the economy will provide a lifeline to individuals and businesses struggling to survive the economic crisis created by COVID–19.”
The vast majority of NFIB-member, small-business owners operate as sole proprietors, limited liability companies, or Sub–S corporations. The most significant adverse impact from AM 3093 falls squarely on the shoulders of individuals and businesses operating as pass–through entities.
Keep up with the latest on Nebraska small business at www.nfib.com/nebraska or by following NFIB on Twitter @NFIB_NE
###
For more than 77 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is a nonprofit, nonpartisan, and member-driven association. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses and remains so today. For more information, please visit nfib.com.
NFIB
233 South 13th St., Suite 700
Lincoln, NE 68501-0008
402-474-3570
www.nfib.com/NE
Twitter: @NFIB_NE
