A TALE OF COMPETING PROJECTIONS: GOVERNOR'S OFFICE, OPENSKY FIGURES DIFFER

LINCOLN- Nebraskans have been presented with two starkly different projections on whether taxpayers will be paying more of less should Gov. Pillen's proposed property tax plan be adopted. Currently, Pillen is calling for up to a 1-cent hike in sales tax and a newer, higher sales tax on some purchases to offset property taxes.

On Wednesday, Sen. Lou Ann Linehan, the sponsor of the tax plan, and Pillen administration officials held a briefing for legislators. They provided projections that seem to indicate that many Nebraska households would see net tax savings of between $1,036 and $2,137. However, those projections differ significantly from those released by the OpenSky Policy Institute.

OpenSky projected that the top 5% of taxpayers, those with household incomes of more than $252,600, would pay slightly less in overall taxes, while low- and middle-income families will end up paying slightly more than they do now. "Overall, this tax shift makes Nebraska's tax system more regressive," said Rebecca Firestone, executive director of OpenSky.

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