Created: Fri, 14 Feb 2014 04:00:00 CST
Updated: Fri, 14 Feb 2014 05:19:01 CST
One of Governor Heinemen's key legislative priorities is in trouble and headed for a major overhaul.
LB-1097 would provide a major income tax cut and is supported by major business groups and is the main goal of the Governor.
The problem is that the measure would reduce state revenue by 645 million dollars a year. That's 16% of current state spending, or the equivalent of 11,000 teachers' salaries.
Even the bill's sponsor Senator Burke Harr admits the bill cannot survive in its current form.
The plan will be re-worked to make it more realistic, particularly the provision to reduce the top end of the tax rate scale.
The Open Sky Policy Institute estimates that over 61% of the tax cut benefits would go to the top 20% of income earners.