OMAHA Jan 15 Nebraska Governor Dave Heineman on
Tuesday became the second Republican governor in the last week
to propose ending his state's income tax, saying he wants to
make Nebraska more competitive with its neighbors by eliminating
the tax on both individuals and corporations.
Heineman said that if a complete elimination of the two
taxes could not be passed, he would push to lower rates on both
individuals and corporations. He promised to make up the lost
revenue by reducing business exemptions to the sales tax.
Last week, Louisiana Governor Bobby Jindal said he wanted to
eliminate all personal and corporate income taxes in his state.
Louisiana's personal income tax rate is 3.9 percent.
Nebraska's personal income tax rate is 6.84 percent, higher
than every one of its neighbors -- Iowa, Kansas, Missouri,
Colorado and Wyoming -- according to a table accompanying
Heineman's fellow Republicans control Nebraska's
Most U.S. states tax both individual and corporate income,
according to the Tax Foundation, a nonprofit and nonpartisan
organization that measures federal and state taxes.
But seven states -- Texas, Florida, Washington, Alaska,
Nevada, South Dakota and Wyoming -- do not tax individual
income, according to the Tax Foundation.
Two others -- New Hampshire and Tennessee -- do not tax the
earned income of individuals, but do tax interest and dividend
Three states -- Nevada, South Dakota and Wyoming -- have no
corporate income taxes, according to the Tax Foundation. Three
others -- Ohio, Texas and Washington -- have no corporate income
tax but tax the gross receipts of businesses.
Other states in the country's midsection, including Oklahoma
and Kansas, have also recently considered lowering taxes.