LINCOLN — Groups representing retirees, children, rural Nebraskans and others joined Tuesday in opposition to Gov. Dave Heineman's tax-cut plan.
Coalition members said the plan, embodied in Legislative Bill 970, would increase future budget gaps and reduce the state's ability to invest in the future.
It also could force increases in property taxes, they said.
"LB 970 provides big tax breaks to corporations and millionaires while it tosses a few peanuts to the majority of hard-working Nebraska taxpayers," said Nancy Fulton, president of the Nebraska State Education Association.
In response, the governor called members of the coalition “special interest groups” who want to grow state government.
“These liberal interest groups support higher taxes on middle class Nebraskans,” Heineman said in a statement. “They want to increase government spending while I want to lower taxes for Nebraskans. As I have said repeatedly, the choice is between providing tax relief for hard-working, middle class taxpayers or more spending for special interest groups. I will continue to fight for the taxpayers.”
Mark Intermill, advocacy director for AARP Nebraska, said the proposal would make it difficult for the state to maintain roads, provide health care, fund education and maintain other needed services.
He called for lawmakers to shelve the plan in favor of a "statewide conversation" about state and local government priorities.
Heineman has said the tax-cut package would help "the hard-working middle class" and make the state more attractive to new businesses.
LB 970 would make $131 million in individual and corporate state income tax cuts in the first year and about $326.6 million over the first three years.
In addition, it would eliminate the inheritance tax, which provides between $40 million and $48 million a year for county governments.
Along with NSEA and AARP, the groups involved in the coalition are: Nebraska Appleseed Center for Law in the Public Interest, Center for Rural Affairs, Lancaster County Board, Nebraska Association of County Officials, Open Sky Policy Institute, and Voices for Children of Nebraska.
Contact the writer:
402-473-9583, martha.stoddard@owh.com
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