Lou Ann Linehan has proposed up to a 1-cent increase as a way to balance the 40% reduction on property taxes, drawing protest from both liberals and conservatives. The governor found no one in Nebraska’s unique one-chamber legislature made up of 49 lawmakers to propose such a bill. In cities that charge a local sales tax, that could tack on nearly 10 cents for every dollar spent on clothes, appliances, cars and other goods and services outside of groceries, which aren’t taxed in Nebraska. Earlier this month, the governor proposed boosting the sales tax by 2 percentage points, which would make it the nation’s highest at 7.5%. What Pillen didn’t mention was his proposal to support lower property taxes by increasing the state sales tax. “It’s not the job of government to hoard cash,” Pillen said. He also backed proposals to close several tax loopholes for special interests, transfer $274 million from the accounts of some 500 state agency cash funds toward property tax relief, and raise a tax on cigarettes by as much as $2 a pack. Pillen touted a series of budget adjustments, including a bill that would impose a hard spending cap on local governments that could only be increased by a vote of the people. How to reach that 40% reduction will be a challenge.
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