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Another governor proposes scrapping state income taxes

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While the federal government is looking for ways to increase taxes, Republican Gov. Dave Heineman of Nebraska is looking to do away with the state’s personal and corporate income tax.

In a Fox News interview, Heineman said they are looking to repeal some sales tax exemptions to cover the loss of revenue, and would like to see a simpler, fairer tax code. Much of the state’s tax code was implemented four to five decades ago during a different economic environment.

“The bigger picture here — we can be more attractive for jobs and higher paying jobs if we don’t have an individual and corporate income tax,” said Heineman.

Individuals and small businesses in Nebraska pay about 6.8 percent in income taxes. Heineman said two of their five neighboring states do not currently have income taxes, and this would make his state more competitive.

Heineman is the second Republican governor to make such a proposal. Last week Louisiana Gov. Bobby Jindal also proposed eliminating income taxes in his state.


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