NewsLocal News


Nebraska lawmakers kick off debate on income tax bill

Nebraska State Capitol Building
Posted at 9:33 AM, Feb 17, 2022
and last updated 2022-02-17 10:33:49-05

LINCOLN, Neb. (AP) — Nebraska lawmakers are squaring off on a bill that would lower the state’s top income tax rates, an idea backed by conservatives and business groups but fiercely opposed by some progressive lawmakers who cast it as a giveaway to high earners.

The bill would lower Nebraska’s top individual income tax rate from 6.84% to 5.84% by 2025.

It would also drop the top corporate tax rate from 7.25% to 5.84% by 2026.

The state Department of Revenue says Nebraska imposes the top rate on taxable income above $64,430 for married couples filling jointly and $32,210 for individuals.

Supporters of the bill argue that many middle-income residents earn far more than those amounts and thus pay some of their taxes at the highest rate.

Download our apps today for all of our latest coverage.

Get the latest news and weather delivered straight to your inbox.