Nebraska Senator Proposes Resolution to Eliminate Property and Income Taxes

State Senator Steve Erdman has introduced a new constitutional resolution, LR300CA, which proposes eliminating property and income taxes in Nebraska in exchange for implementing a new consumption tax on most purchases, including food and services. Doctors are currently not subject to tax.

Erdman has expressed enthusiasm for the proposal, saying it would make Nebraska the most attractive state to live in, both for retirees and young people. The resolution would allow voters to decide whether to replace all of these taxes with a consumption tax, similar to a sales tax, set at about 10.6% for all purchases, including services and food.

The senator has emphasized that under this proposal, there would be no exemptions and that the tax would be paid only by the original consumer. For example, in the case of purchasing a used car, the consumption tax would be paid by the first owner.

As a compensatory measure for low-income families, all citizens would receive a payment called “probate” of around $1,000, intended to mitigate the impact of the new consumption tax.

Additionally, Erdman has noted that the proposal would eliminate the need for property tax breaks and that the state would not have to offer costly tax incentives to attract businesses.

The resolution has been co-sponsored by nine other legislators and is expected to generate intense debate in the coming months as it proposes a significant change to the state of Nebraska’s tax system. If passed, Nebraska would become the first state to move to an excise tax.