Ricketts stresses support for tax cuts ahead of bill debate

February 15, 2022 GMT

LINCOLN, Neb. (AP) — Nebraska Gov. Pete Ricketts made clear again on Monday that he wants lawmakers to cut the state’s income tax this year, arguing that doing so will keep the state competitive.

Ricketts argued his case at a press conference with Nebraska business leaders. The Republican governor has backed several proposals, including a faster phase-out of Social Security income taxes, a bill to lock in existing property tax credits and legislation to lower the state’s top income tax rate.

Scott Gubbels, the executive director of Tax and Renewable Energy at Nelnet, said Nebraska’s existing tax rate has been a hindrance when his company tries to bring existing employees to Nebraska from its offices in other, lower-tax states.

Adam Kavan, who owns a Lincoln construction company, said cutting taxes would help his small business as it confronts inflation and supply chain issues.

Critics note that lowering the top income tax rate would provide a much larger benefit to the wealthy, who pay more in taxes.

Lawmakers are likely to start debate on the income tax bill sometime this week.