Senators Scale Back Proposed Corporate Tax Cut

The Associated Press

Nebraska lawmakers scaled back a proposed corporate income tax cut on Tuesday to compromise after some senators complained that most local taxpayers wouldn’t see any benefit.

Senators trimmed the tax cut by roughly half and advanced it to a third and final vote in the Legislature, after which it would go to Gov. Pete Ricketts.

Supporters argued that the lowering the rate would make Nebraska more attractive to large businesses that would create new jobs, but some lawmakers said it would make more sense to focus on education and job-training programs.

Legislative Bill 432would reduce the top corporate income tax rate from its current 7.81% to 7.25% over two years. Supporters initially pushed to lower it to 6.84% to match the top individual income tax rate, but the idea faced strong opposition.

Under the compromise measure, lawmakers said it’s their intent to lower the rate down to 6.84% in the future, but the proposal’s wording has no legal force. Sen. Mike Groene of North Platte said the measure is “tying the Legislature’s hands with paper mache,” because future lawmakers can simply ignore it.

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