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Gov. Dave Heineman, (R-Neb.), on his proposal to eliminate the state’s personal and corporate income tax.
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Thousands that.
Aren't we kick off today show with the bold idea from Nebraska's governor Dave Heineman.
He wants to completely eliminate.
Both the corporate and individual income taxes in his state he's not the first person to ever suggests is of course.
But here's why it's different he thinks he can do without raising other tax rates are joining me now it's.
The plan governor Dave Heineman great to have you back on the show governor thanks for joining us.
I'm delighted to be with the -- afternoon it is about the money.
It is about the money that's right so why do you wanna do this and how do you think didn't get it done.
But what we wanna do -- because we wanna create more jobs in Nebraska we wanna create higher paying careers.
And in order to be more competitive you need to eliminate the individual income tax in the corporate tax.
And we do it by repealing the sales -- -- exemptions that we branded over the years.
Many may have been well intended but if we can eliminate about 2.4 billion dollars of them about half of what we've granted.
Then we can eliminate the individual income tax and the corporate tax.
People still down on the map -- -- -- you know I always get hung up on the map you get 54 point 8% of your state revenue.
From -- state income tax so that's a lot of mind you're given -- more than half your revenue would closing the sales tax is exemption.
Make up for that it and and what does that mean what are some examples.
Wolf you like you said not 2.4 billion dollars of our revenue comes from.
The income tax corporate individually.
We want to eliminate about 2.4 billion dollars of various sales tax exemptions that are being granted.
They go all way across the board from a machinery energy wide variety of things were trying to focus on business.
Sales tax exemptions because again.
I've talked to business leaders they want simplicity and fairness and there will be -- -- if we can get the lower rates in the ministry of all -- zero.
So they're willing to pay a higher rate I mean in the end attacks -- attacks -- you're talking about.
Taxing the products to big by the investment that they make for their business maybe or that or the products they're selling.
So it does seem like it would be an impediment elsewhere in their business they think -- it in the -- -- the better trade off.
It's a better trade off because again we're talking about simplicity and fairness.
Give up the exemption is there no longer paying corporate tax if your small business you pay through the individual income tax anyway.
And then the other attractive feature it means their employees would no longer be paying individual income tax.
And that's very important of them in terms of attack attracting talent.
To their company into our state.
What sort I think you might have a problem is you -- wanna create jobs in your state but you boast an incredible unemployment rates three point 7%.
I mean that I wasn't even sure that was possible any longer at 88 supposed to create inflation when your unemployment rate is.
Below 4% you don't want to drive that even lower -- mean it's it at actually start to become dangerous.
If you go to 20 I know exactly where you're talking about but we're talking about keeping more her sons and daughters here.
We're also talking about recruiting more people to come to Nebraska we want new Nebraska ends.
To come here and that's our challenge and we need to be more tax competitive.
In order to do that real -- how much support to -- -- I think we're gonna have a lot of support -- told us citizens listen to this plan.
Help make it better if you can't but I expect to see a lot of support but it's not without controversy as you can imagine.
Governor we're gonna keep our analysts it's so -- -- there's so many states that are doing this it feels like as a reaction to the rising tax climate in Washington.
So keep us posted -- what happens thanks for coming on.
Thank you turn.
