Heineman Tax Package In Trouble

By: Associated Press Email
By: Associated Press Email

Nebraska Governor Dave Heineman is acknowledging that his full tax cut package for Nebraskans probably won't become law because of a lack of support in the Legislature.

The governor said in a conference call Tuesday that he is seeking a "workable, practical" compromise with lawmakers, but he conceded that his proposal to eliminate a county inheritance tax likely will not pass.

Heineman maintained that the state can afford his $327 million tax cut proposal if lawmakers limited spending. His proposal would lower individual and corporate income tax rates, and eliminate an inheritance tax imposed by counties.

Counties have vigorously opposed that part of the tax package, and argued that it will force property tax increases. Heineman said the counties are "crying wolf," and said the tax makes Nebraska less competitive.

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