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Nebraska Governor Dave Heineman discusses why he is looking to make the Cornhusker state more competitive for business.
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Axes than what were calling -- mini state by state tax revolt.
-- five states are looking to eliminate state income taxes for people and corporations.
They are Louisiana Kansas and North Carolina Oklahoma and Nebraska.
And you know if you wouldn't know what the governor of Nebraska David tenements here and he's gonna explain to us why does that stack -- governor thanks for joining us this morning.
What all of a sudden that all of these states have the same epiphany or whether the same realization that.
There's only one way to get -- -- local economies going and that would be the change your taxes.
Well I would -- Charles that we've all looked at the economy there were competing in which is worldwide.
And we know we need to be more tax competitive I want to create more jobs and in this state our state.
For citizens and higher paying jobs in the way to do that.
Is they have lower income tax rates incorporates -- in our particular case I'm proposing the complete elimination of the income tax on the corporate tax rate.
We do that by repealing some of the sales tax exemptions that -- granted over the years we need a modern simpler and fairer tax code.
Okay I'm gonna get to the -- issue in a moment governor but.
The basic premise that somehow this will spark the economy obviously everyone doesn't believe that.
Or that would be that program we have now what why why would someone in your state is worried about this.
How can you convince -- that this indeed will help overall the overall economy.
Well I want to talk to a matter of fact if you're working on Nebraska and now all of sudden you will be paying income taxes that'll help you.
If you're seniors paying on your -- Social Security income that'll now be exempt.
Military retirement you go right down the list particularly for small businesses they -- through the individual income tax.
-- so they would no longer be paying -- taxes.
All of that is gonna help us compete because when they.
Company looks to expand her -- they want to locate they look at tax rates.
And you think they're gonna -- in the state like I'm lying -- income tax rate is six point 84%.
Or a state where it's zero.
I think we all know the answer to that so we know we have become more competitive governor -- you've mentioned the work.
Fair -- the about it in at the same token you actually talked about taking out exemptions.
44 sales tax is now.
Oh what are the big.
Problems that people have with the scenario that you're talking about they say that it's really of regressive tax that the the less money or less income people have the harder it's gonna hit them.
And so -- will be the last word used to use with the sort of proposal.
Well I don't necessarily I totally agree with -- understand what you're talking around terms of the regressive that he.
The sales tax but we're talking about business.
Sales -- exemptions.
For example we're not gonna repeal the -- -- exemption for food -- -- would hit low income people.
So again it depends.
How you classify how you make that determination.
But I'm trying to make it is serves I can't and again on a small businesses -- exemption do you get from the tax code and surely the answer is -- So okay so Lauren come you give a break on food and all also utilities.
You know we now we don't have sales -- -- their right now as I've -- at all.
Want to know wanted to do -- it to do do here at this this whole thing all the sudden all of these states all run by Republican governors all of the same idea.
Beyond the obvious economic benefits that you point to.
Is there -- methods that you're trying to send to Washington DC about the fact that our economy simply not growing.
Well I haven't talked.
The other Republican governors I think we all arrived at this independently.
Whenever there is a message I would send to the -- -- to the nation's capital warship to DC.
It's what I call -- novel financial concept that we use in Nebraska they've never heard of there.
We don't spend money we don't -- thank -- -- out of trouble every single day.
And they need to learn how to do that with their their budget just like we do you are -- -- budgets of business but price.
That's true I mean it it doesn't like it doesn't want to highlight though and a lot of attention novel did -- novel the governor's point and he's putting out -- fiction in Washington DC about spending money that we don't run nothing has stimulated more fiction -- the income tax code.
So governor my question to use our.
What's been the reaction -- move here.
-- the reaction in our -- been very positive so for.
Now the devil's in the details -- told Nebraska as we need to stay wide conversation.
The good thing about my citizens that are not bashful about sharing their strong opinions with me.
But again unlike the federal government will sit around the table and will find a common sense solution.
How do we make our state more competitive so would quit losing our young people.
To jobs in other states and I think we can do this and that's -- we're focus on.
You know governing American workers earlier and you know I've studied this whole thing as well in this one benefit to this that I see and I'm not -- of its politically correct and even articulated but.
It actually motivates people to get off the sofa I mean there's a lot of people in this country who don't have to work because it's more attractive just to stay at home.
And reap the benefits but the fact of the matter is that the that's really you know get people particularly younger people to believe them.
The economy to believe in capitalism to -- the estate and actually get up.
And hit the statement.
Well I I I think it's.
Great way to look at and I appreciated and I agree with yeah hey I'm trying to create the opportunity.
For people to get a job move into good paying career I believe very strongly education is a -- -- governor but you gotta have a competitive tax system governor obviously with -- -- Watson is very very.
Mostly I think it's a bold move and it's a move that the whole lot of other states are probably gonna fall thanks for your time this morning.
Thank you -- back.
