State Sen. Steve Erdman pushes to overhaul Nebraska tax system

Published: Mar. 3, 2020 at 9:39 PM CST
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's wants to get rid of the income tax, property tax, sales tax, and inheritance tax. Some Nebraska lawmakers like his alternative because it would make taxes more affordable for rural Nebraskans.

"We're currently on a tax model that 55 years old...1965. How did they change it? They changed it with an initiative petition," said

, a supporter of Nebraska tax reform.

Three Nebraska lawmakers, led by Erdman, said it's time to revamp our tax system and turn to a consumption tax.

In its simplest form, taxes we know of today would be gone and a consumption tax would go in its place. This tax would only be used when buying new goods and services.

"This is a way to put Nebraska first in every single category there is when it comes to taxes. Every single one," Erdman said.

Erdman pitched the idea to a gathering Tuesday night. He said he wants to see the consumption tax on the 2022 ballot.

A consumption tax would come in around 10.5% but Erdman said it wouldn't feel that heavy. He said relief would come in the form of a pre-bate. Essentially every Nebraska resident would get a check of state tax dollars that you could spend however you please each month.

Several taxes, like the gas tax, would remain. This is a complex tax, but Erdman believes it's simpler than what the state is currently using.