By PAUL HAMMEL <a href="https://nebraskaexaminer.com/2022/02/16/bill-to-cut-state-income-taxes-corporate-taxes-runs-into-immediate-filibuster/">Nebraska Examiner</a>LINCOLN
 — State lawmakers traded one filibuster for another Wednesday as debate
 began on a major proposal to reduce state income taxes.State
 Sen. Lou Ann Linehan of Elkhorn said that Legislative Bill 939 would 
make Nebraska more competitive when it comes to individual and corporate
 income taxes and that the state’s surplus of tax revenue means some 
money should be returned “to the people.”&nbsp;Right
 now, Nebraska’s top income tax rate, 6.84%, is higher than any 
neighboring state, and Iowa’s governor is proposing to reduce its higher
 top bracket to a flat 4% by 2026.<figure>
 <img src="https://media.eaglewebservices.com/public/2022/2/1645040479612.jpeg" alt="State Sen. Lou Ann Linehan of Elkhorn (Courtesy of Unicameral Information Office)" />
 <figcaption>State Sen. Lou Ann Linehan of Elkhorn (Courtesy of Unicameral Information Office)</figcaption>
 </figure>“We are simply not competitive with our surrounding states,” Linehan said.&nbsp;Under
 LB 939, the top income tax rate would be reduced gradually to 5.84% by 
tax year 2025. It would affect individuals who make more than $32,210 
and families whose combined income is $64,430 and higher.An amendment to the bill would lower the state’s corporate income tax rate from 7.1% to 5.84% by tax year 2026.Linehan
 said that would provide “parity” for businesses that pay their taxes as
 individual income tax and those corporations that pay corporate taxes.Lincoln
 Sen. Mike Hilgers, the Speaker of the Legislature, said LB 939 provided
 “one of the broadest based” tax benefits of any proposal.But
 opponents to the bill, led by Omaha Sens. John Cavanaugh and Megan 
Hunt, said it would mostly benefit the richest Nebraskans and might 
serve to erode state revenue to the point that it threatens the social 
“safety net” for the poor.Cavanaugh
 said there’s no proof that lowering taxes results in more businesses 
and workers coming to Nebraska. Hunt said young people look at other 
things, including social policies of a state, before locating there.<figure>
 <img src="https://media.eaglewebservices.com/public/2022/2/1645040514616.jpeg" alt="Sen. John Cavanaugh of Omaha (Rebecca S. Gratz for the Nebraska Examiner)" />
 <figcaption>Sen. John Cavanaugh of Omaha (Rebecca S. Gratz for the Nebraska Examiner)</figcaption>
 </figure>Cavanaugh
 said more than half of Nebraska taxpayers earn less than $70,000 — thus
 not getting a lower rate under LB 939. He said a better approach would 
be to increase the earned income tax credit provided to those who earn 
less than $50,000 per household.OpenSky
 Policy Institute, a Lincoln-based think tank, said that 83% of the 
corporate tax breaks flow to out-of-state entities and that someone 
would have to earn $80,000 or more to benefit from LB 939.&nbsp;OpenSky
 has also questioned whether the state can afford another tax break, 
since it appears that a tax cut on Social Security income and a bill 
increasing the state’s tax credit on property taxes paid to K-12 schools
 are headed for approval this session.The debate on the income tax proposal appears headed for a filibuster by opponents that could last into next week.Earlier
 Wednesday, state lawmakers overcame another filibuster against a 
proposal by Blair Sen. Ben Hansen to clarify that persons with religious
 objections or health conditions can opt out of COVID-19 vaccination 
requirements by employers.An
 amended version of LB 906 had gained support by the state’s health care
 groups. It advanced from first-round debate on a 36-2 vote after a long
 discussion that centered mainly on whether COVID-19 shots work to stop 
and spread infections and whether some senators were spreading 
“misinformation” or not.Dr.
 James Lawler, an infectious disease expert at the University of 
Nebraska Medical Center, told KETV on Tuesday that getting fully 
vaccinated improved your protection against getting infected by 50%. 
Vaccination also reduces the severity of any infections and reduces the 
time someone is infectious, Lawler told the station.

Bill to cut Neb. state income taxes, corporate taxes runs into filibuster