(Omaha, NE) -- Governor Dave Heineman's blueprint for a less burdensome tax system and modest budget increases is a sound way to build Nebraska's economy: that's the assessment of two influential citizen groups, who today urged State Senators to act swiftly on these key fiscal reforms. The two organizations, Nebraska Taxpayers for Freedom (NTF) and the National Taxpayers Union (NTU), have vowed to wage a grassroots campaign on behalf of Heineman's plan as well as other tax and spending measures.
"If Nebraskans are to enjoy a brighter economic future, elected officials must modernize a state tax system that remains stuck in the Nineteenth Century," said Doug Kagan, Chairman of NTF. "Streamlining the income tax and ending the death tax are two vital steps in helping citizens walk the path to prosperity."
Governor Heineman proposes to consolidate Nebraska's four income tax brackets into three and decrease the top two tax rates (which the majority of residents already pay). In addition, he would index the brackets to increase with inflation, so that taxpayers are not penalized for earning wages that rise with the cost of living. The plan would also phase out the Nebraska homegrown estate tax. Currently, only one-third of states impose a separate death tax, the remainder levying a "pick-up" that absorbs a large credit the federal government offers on estate taxes.
These important steps also earned accolades from NTU, which has 350,000 members nationwide and 3,100 members in Nebraska. In advocating for Heineman's proposal, the group plans to contact legislators, mobilize its members through e-mail alerts, and conduct numerous talk radio interviews around the state.
Today, however, NTU Senior Government Affairs Manager Kristina Rasmussen sent an open letter reminding the Governor that "revenue is only half of the budgeting equation. Controlling government spending is just as important to the state's fiscal health as implementing a streamlined tax structure." For this reason, Rasmussen expressed support for Heineman's cap on overall budget growth of 3.8 percent over the next two years.
"In the absence of strong, constitutional tax and spending limits, Nebraskans must convince elected officials that the budget culture in Lincoln must change," Rasmussen concluded. "Working together, NTF, NTU, and committed citizens can put Nebraska government on a steady course that will help sustain a vibrant economy."
The nonpartisan NTU was founded in 1969 to work for lower taxes and smaller government at all levels. NTF, an affiliate of NTU, was founded in 1982 to educate and inform Nebraskans and our elected officials that conservative free enterprise solutions exist to solve the political, economic, and social problems of the state and nation. Note: For further information, including the letter to Governor Heineman, visit www.netaxpayers.org or www.ntu.org.