Nebraska lawmakers have advanced a measure that would provide tax cuts of more than $400 million over the next two years.

Senators gave second-round approval to the bill (LB367), which would provide a property tax credit and end the estate tax and the so-called marriage penalty that causes some couples who file jointly to pay more in income taxes than if they were single.

The Legislature voted Wednesday to eliminate a requirement that school districts cap their property tax rates at no more than $1 per $100 of assessed property value -- a 5-cent reduction from the current level.

After lawmakers rejected an amendment that would decrease the state sales tax to 5 percent from the current 5.5 percent, Senator Ernie Chambers of Omaha introduced another similar amendment.

Senator Tom White of Omaha and others argued for the sales-tax reduction.

"It affects almost everyone, and it can help all," said Senator Dave Pankonin of Louisville.

But Senator Mike Friend of Omaha said no clear idea of where the money to pay for the tax cut would come from.

"We have to balance the budget," Friend said. "This isn't the United States Congress."