ON-Lion Letter
Fifty years ago, Nebraskan lawmakers overhauled the state's tax code, bringing the state's finances into the 20th century.  Since then, however, the Cornhusker economy has grown and diversified, while the code has remained stagnant.  The result is a tax system that cannot cope with the realities of a modern, 21st Century economy.

This year, policymakers are looking for ways to keep the state competitive in the 21st Century, and according to a recent report from the Tax Foundation in Washington, D.C., and the Platte Institute for Economic Research, the tax code is ripe for reform.  A Twenty-First Century Tax Code for Nebraska details several key areas where the state's code has fallen behind, highlights lessons that Nebraska can learn from other states, and explains it all within the context of Nebraska's current economic make-up.

"There is a responsible approach to tax reform in Nebraska -- reform that reduces topline corporate and individual income tax rates, enhances tax neutrality by rolling back corporate tax credits, increases the equity of the sales tax by broadening the base to include select services, and reduces reliance on tangible personal property taxes," said Tax Foundation policy analyst Jared Walczak, who researched and wrote the report.  "By relying on offsets and triggers, policymakers can ensure revenue stability while giving the state a competitive edge.  That would be a worthwhile legacy for many years to come."

The Lynde and Harry Bradley Foundation in Milwaukee substantially supports the Tax Foundation, including its Center for State Tax Policy.
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