In the last 20 to 30 years, Nebraska has experienced a major brain drain from high school and college grads who have relocated to other states that have 30% to 70% less tax burdens than Nebraska. This brain drain must be stopped.
When you look at states that have either reduced or eliminated their wealth or income taxes, prosperity is the result. Our legislature must learn from its experience and go a step or two further. EPIC Consumption Tax Reform, LR264CA, is a bold and innovative plan that will make Nebraska competitive again. It will apply an 8.97% consumption tax to retail products and services to eliminate (not reduce) five current Nebraska state taxes: property tax, individual income tax, corporate income tax, sales tax, and inheritance tax.
Senators seek election and re-election with promises of property tax cuts. No plan is perfect, but on our current course, we’re just rearranging the chairs on the deck of the sinking ship.
EPIC Consumption Tax will widen the tax base from the current $49 billion on retail sales to $124 billion on retail products and services by eliminating thousands of tax exemptions. Hardworking, low- and middle-income Nebraskans will also benefit from EPIC. No consumption tax is paid on used goods, only new goods. Each family receives a monthly advance to pay their consumption tax on basic necessities up to the federal poverty line.