Nebraska bill to prevent tax increase clears key hurdle
LINCOLN, Neb. (AP) — A bill designed to prevent federal tax changes from triggering a tax increase in Nebraska has cleared a key hurdle in the Legislature.
Members of the Revenue Committee voted 7-0 on Tuesday to advance the measure for debate in the full Legislature.
Nebraska taxpayers could end up paying more to the state this year unless lawmakers halt the automatic changes in the Republican congressional plan, including the elimination of popular tax exemptions.
The Department of Revenue says the tax law signed by President Donald Trump would result in an additional $220 million for state government this year. Nebraska’s system is changing because it’s heavily tied to the federal tax code.
Sen. Jim Smith of Papillion introduced the bill on Gov. Pete Ricketts’ behalf.