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Governor proposes new tax reform plans
Efforts are underway in Nebraska when it comes to the state's tax reform system. Governor Heineman has thrown a few proposals out on the table.
One example is eliminating the state inheritance tax. But, now there's a discussion about the Heineman's suggestion to cut income taxes.
So how will this affect the region?
The county will face some serious hardships. According to research, the county has low reserves and cannot raise property taxes to replace revenue without exceeding property tax limitations.
During this current budget year, the Adams County Board of Supervisors borrowed over a million dollars to meet certain needs.
A move that saved two cents on the levy property tax.
"The inheritance is one that we do need," said Adams County supervisor Eldon Orthmann.
Nebraska is one of eight states with an inheritance tax and Governor Heineman says getting rid of the tax will keep more people in the state.
But Adams County Board of Supervisor Eldon Orthmann says eliminating it will do more harm than good.
"There's a possibility of taxes going up or cutting services, we have cut services as much as possible, we feel we're being very frugal with the money," Orthmann said.
The inheritance tax only affects 200 people in Adams County but if it's cut
"If you have a $100,000 home take two cents times that figure and that's how much more you will pay in property tax," said Orthmann.
There's another proposal Governor Heineman is rumored to be throwing around - cutting income taxes for small businesses or completely eliminate state income taxes altogether.
But, for local business there's one problem.
"How will they replace the income tax? Will it be in sales tax; will it be an increase on property tax?" Hastings Chamber of Commerce President Tom Hastings said.
The discussion of cutting income taxes has caught the attention of local politicians.
State Senator Jeremy Nordquist called the latest proposal 'just another tax scheme' that the governor has included in his plan to reform Nebraska's tax system.
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