LINCOLN - The Platte Institute is proposing an expansion of Nebraska’s sales tax base as lawmakers prepare to address persistent state budget shortfalls during the upcoming legislative session in January. At the think tank’s Annual Legislative Summit, tax policy experts discussed broadening the sales tax to additional goods and services, including currently exempt items such as groceries and feminine hygiene products, as a way to generate additional state revenue. Platte Institute Senior Tax Policy Advisor Jared Walczak argued that Nebraska’s recent income tax reductions have not been accompanied by corresponding sales tax reforms, unlike approaches taken in other states. Nebraska has been gradually reducing its top individual and corporate income tax rates since 2023, with both scheduled to reach 3.99% in 2027. The proposal could renew debate over how Nebraska funds government services and how changes to the tax system would affect consumers and businesses.

Read the full article by clicking HERE