Nebraska governor is latest to propose ending state income tax

Comments (28)
bobsmon wrote:

Since sales taxes affect the poor more than the rich and the rich are more affected by personal taxes. So they are moving taxes from the rich to the poor. Yeah rebubicans

Jan 15, 2013 6:50pm EST  --  Report as abuse
genuinefor89 wrote:

Pay your fair share Democrats.

Jan 15, 2013 7:46pm EST  --  Report as abuse

Trust me, Red State Nebraska has PLENTY of other taxes, all of which are high enough to make Deep Blue Massachusetts positively shake with envy! For instance…property taxes on $385k house..over $11,000.00 a yr. That’s right. The property tax alone raises your mortgage payment by almost $1000.00 a month. And you never pay that off. High sales tax. High car tax. High state income tax. And get this??? They’re running deficits with high unfunded liabilities! That’s hilarious!

Jan 15, 2013 8:16pm EST  --  Report as abuse
IHateCommies wrote:

EVERY able bodied person should have to pay something, NO ONE should have a completely free ride. The working class people that get up and go to work every single day are getting sick and tired of dragging free loaders around like a stack cinder blocks.

Jan 15, 2013 8:24pm EST  --  Report as abuse
TommyR wrote:

EXCELLENT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Jan 15, 2013 8:37pm EST  --  Report as abuse
HarryO12345 wrote:

This is all good but states that have no income tax usually have HIGH property taxes and other frivolous taxes to compensate.

Jan 15, 2013 8:40pm EST  --  Report as abuse

bobsmon, you are seriously mistaken. Nebraska’s sales tax has so many exemptions for business and other institutions, it is stunning any money comes in at all. By ending many of these exemptions, Nebraska can end the income tax and I think we should.

Jan 15, 2013 8:50pm EST  --  Report as abuse
dogbird wrote:

We need a tax system that rewards the acheivement, or doesn’t punish it. I say a flat tax on all earnings above $10,000 for a single childless person and above $20,000 for anyone raising children. We can put the rate at 10% to start with and maybe do a low rate sales tax on non-essentials (whole grain, fruits and veggies, certain meats), maybe 2-3% rate. With these changes needs to be a drastic cut in federal spending, maybe 50-60% of what’s spent now. Poor people in this country are rich in comparison to most of the rest of the world. We need to get real.

Jan 15, 2013 9:31pm EST  --  Report as abuse
Carbona wrote:

Governor for Life!!!!!! Thank you!!

Jan 15, 2013 9:53pm EST  --  Report as abuse
postalman wrote:

This might make me move back to Omaha! Nebraska was so bad for taxes I left. Now I might move back. I wish the US govt. would grow some brains and do the same thing.

Jan 15, 2013 10:15pm EST  --  Report as abuse
44Guyton wrote:

For all the liberals/progressives and parasites move to my state New York. You’ll enjoy the high taxes and regulation. We can’t get enough Socialism here.

Jan 15, 2013 10:17pm EST  --  Report as abuse
postalman wrote:

Why should people who are poor not have to pay taxes? The use more social services? Fairness is when everyone is paying their fair share. How more fair could you be than everyone pay the same tax on purchases. If people want more money, work for it. Quit relying on other people to pay your share!

Jan 15, 2013 10:18pm EST  --  Report as abuse
AdamSmith76 wrote:

As a NE resident, I am shocked…pleasantly. This state has always been a red state run like a blue state. To those who say the income tax affects the poor adversely, I don’t share your point of view. It is a socialist construct of fairness that we take from those who can afford to give to those who can’t. I say “Pay your own way.” If someone uses the services of government, in food assistance, welfare, or what-have-you, it is only fair that that person owes society more. The more one takes, the more one owes. Yet we are conditioned to think the other way round. Those who risk capital or earn money are not in any way takers, and only a gross ignorance of economics would make one believe otherwise.

Jan 15, 2013 11:08pm EST  --  Report as abuse
cek100248 wrote:

I don’t understand the point of reducing or eliminating some taxes while making up for the lost revenues by raising other taxes. Why not cut spending?

Jan 15, 2013 11:42pm EST  --  Report as abuse

Yes, it’s terrible here in Texas with no State Income Tax. People from all over the USA retire here and bring there money with them/ There are restaurants on every corner here in Houston. You can’t even afford to be on welfare. It pays virtually nothing and the cost of living is so low. Darn shame. No regulations on starting a small business either. Crazy.

Jan 16, 2013 12:25am EST  --  Report as abuse
batmanRox wrote:

Good move, smart man. He knows what makes an economy work… and people too.

Jan 16, 2013 12:38am EST  --  Report as abuse
opps wrote:

- I live in Lincoln, Ne.
- Neighbor down the street….why you moving? He says I’m retired now and can’t afford the taxes here. Moving out of state.
- House and one rental. Property taxes $5,800 EVERY YEAR.
- Mother in law moved back to south dakota.
- extra taxes on eating out to pay for others fun.
- Nebraska football, TAXES.
- “THE GOOD LIFE” taxes. COME JOIN US COMRADE!

Jan 16, 2013 8:22am EST  --  Report as abuse
paulinemay wrote:

Great idea…narrow your base of tax payers. Not really a good idea. Guess who picks up the slack? Property tax payers sales tax and all the other regressive taxes that hit the common folks the hardest.

Jan 16, 2013 9:17am EST  --  Report as abuse
Robert_A_Hahn wrote:

ghjkl

Jan 16, 2013 11:30am EST  --  Report as abuse
Yirmin wrote:

People need to look at how these schemes to eliminate state income taxes work.

1. You don’t eliminate taxes, every state makes sure that removing a state income tax is revenue neutral… which means other taxes will be increased.

2. People only get to deduct state income taxes and property taxes from your income when you do the federal income tax forms. So when you replace an income tax with a higher sales tax you are also going to pay more in fed taxes because your deduction will be gone but not the amount of money you will be paying the state. Remember it is revenue neutral so you are still going to pay, it just wont be deductible.

3. Property taxes are worse than income taxes. At least with income taxes you only pay more when you make more… with property taxes you might not get a raise in 10 years but the property will be increasing in value and the amount you pay will be going up.

Keep those things in mind people. Income taxes are bad, but not as bad as some of the alternatives.

Jan 16, 2013 11:32am EST  --  Report as abuse
ra44mr2 wrote:

Pretty soon all that the coastal liberal havens will have is shipping industry. If i owned a business i would move my business to a state more friendly to me as soon as i could.

Jan 16, 2013 12:33pm EST  --  Report as abuse
ra44mr2 wrote:

For those complain about “other” taxes, having no income tax invites businesses to open where you live which equals more jobs, lower unemployment higher wages so it becomes WORTH it to pay a little higher taxes in other areas. As a poor person barely making ends meet its nice NOT having a state income tax, i can decide how much tax i pay by how much i purchase, obviously i will always pay some, food, gas etc. But as someone that IS poor i obviously dont own my home i rent. Yea i end up paying one way or the other but the point is i dont have a 5000+ bill at the end of the year to try to pay. and if i could afford a home it wouldnt be all that bad. Id rather there was NONE of course i think cutting spending and lowering taxes to the bare minimum to run the govt would be best but too many “gimmes” around to do that.

Jan 16, 2013 12:54pm EST  --  Report as abuse
frek149kie wrote:

This is ultimately the way to get business investment in a given state. It’s certainly nothing new. State income taxes inceesantly rise and drive our business or stifle startup. Sales taxes at least allow the consumer some control over how much bilking they can endure.

Jan 16, 2013 1:00pm EST  --  Report as abuse
SweetRaven wrote:

Bobsmon: this article was about state income taxes NOT sales taxes. Reread so you can actively participate in the discussion. In regards to the rest of your statement, the poor need to pay their fair share and their fair share is not NOTHING. If they can’t pay with money, use their time. Everyone has something to offer. The article did not say anything about republicans. Attempt to discuss intelligently.

Jan 16, 2013 1:30pm EST  --  Report as abuse
Yirmin wrote:

ra44mr2: Even if you don’t own a home you and only rent you are still paying property taxes. This is often a problem with school bond votes where I live, lots of people that rent are overjoyed to vote for new school bonds because they think they don’t own a home so they don’t pay the property taxes… They forget as you did that the person that owns that rental property is going to pass along those property tax increases in the form of higher rent.

Jan 16, 2013 2:43pm EST  --  Report as abuse
UncleFrank wrote:

There is no ‘free lunch’. Texas property taxes are atrocious. Nevada at least has low property taxes and no state imposed income tax. That’s what gaming does for you.

Jan 16, 2013 7:19pm EST  --  Report as abuse

@AmericanGypsea Actually, here in the Democratic bastion of Massachusetts, it’s been proposed to up the income tax from 5.25% to 6.25% while reducing the sales tax from 6.25% to 4.5%.

Call me bonkers, but if I have less money in my paycheck, a lower sales tax isn’t going to make me spend my money more. Between this and the national payroll tax holiday expiration, I feel like I’m being punished for working full-time instead of living off the state and/or Feds where a lower sales tax would benefit me since I’m not paying much, if anything, in income tax.

Raising the income tax is an easy money grab because a sales tax you can avoid: Scale back/delay purchases or go to tax-free states like New Hampshire. An income tax is unavoidable unless you die or stop working and even in those two cases, they’d sure try to get you.

Jan 16, 2013 8:35pm EST  --  Report as abuse
TheNewWorld wrote:

Consumption tax is better than income tax. It gives people a choice with what they do with their money. You can raise more money with consumption taxes that are paid by all, and if you are worried about the poor, you exempt groceries and clothing under a certain cost.

Jan 16, 2013 10:26pm EST  --  Report as abuse
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