Nebraska's unicameral legislature gave second-round approval to tax cut bill LB 367 which, over two years, is expected to cost the state $400 million. From a fairness perspective the bill is largely a "mixed bag." The bill includes a measure to lower the tax bills of the very wealthiest Nebraskans by repealing the state estate tax.
However, the bill also contains some tax cuts designed to help many low and middle income Nebraskans, including an expansion of the state refundable EITC to 10% of the federal level. The bill includes a poorly-targeted property tax cut, the tax brackets for some filers are broadened, and the standard deduction is increased. The good news from the Cornhusker state is that costly proposals (like lowering the state sales tax from 5.5 percent to 5 percent) and even more poorly-targeted proposals like lowering the top rate were both left out of the bill.