NDOR Study Looks at Impact of Tax Cuts
A recent study released by the Nebraska Department of Revenue estimated the financial impact of hypothetical tax cuts.
Using 2016 economic data, the Nov. 1 study found a $100,000 sales and use tax cut would significantly increase personal disposable income, private investment and job creation compared to a similar hypothetical $100,000 cut to individual income taxes.
An income tax cut would be felt more broadly across the state, though, with gains from sales and use tax largely helping retailers.
The study found a $100,000 cut to sales and use tax would result in a $88 million decline in state revenue, a $159 million increase in personal disposable income, private investment worth $100 million and 1,661 new jobs. The retail industry would see a $43 million boost in output.
A $100,000 cut to individual income tax would result in a $95 million decline in state revenue, a $109 million increase in personal disposable income, private investment worth $28 million and 1,026 new jobs. The reduction would be spread more evenly across all industries.
Find the complete study online at bit.ly/2C1AVhB.
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