Heineman asks legislators to eliminate state income tax - KTIV News 4 Sioux City IA: News, Weather and Sports

Heineman asks legislators to eliminate state income tax


The last time Nebraska's tax system was reformed a gallon of gas cost 33-cents.

Governor Dave Heineman says it's time to take another look.

Tuesday, during his state of the state address, Heineman proposed eliminating the personal income tax.

Nebraska's top personal income tax ranks 35th highest in the nation.

Heineman is also proposing to eliminate the corporate income tax.  He says the state will be able to afford these changes by overhauling the system for sales tax exemptions.

"Without the individual income tax and the corporate income tax there would be no income tax on working Nebraskans.  Social security and military retirement income would no longer be taxed.  There would be no tax on small business income," Heineman explained.

Heineman also proposed a two year tuition freeze at the state's universities and community colleges.

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