How Our Taxes and Spending Compare? is the third of six policy briefs released by the Platte Institute for Economic Research as part of their report Removing Barriers in Nebraska.
Sarah Curry, Policy Director for the Institute, says income data from the U.S. Census Bureau shows that Nebraska residents pay significantly higher tax rates and suffer greater tax burdens on income and property per person than Texas, Florida, Arizona, Colorado and Iowa.
She says these are the five states Nebraska loses the most people and income to each year. Curry says each of these states has at least one major tax that is lower than Nebraska’s…
"Some argue Nebraska’s tax rates are high because the tax base is much smaller than other states thus there are less people to spread the tax burden. And while we agree a broad tax base is certainly important for a stable revenue and lower rates, we decided to look into how much revenue Nebraska state and local governments collect when compared to these other states.”
Using Census Bureau data, Curry says they found that Nebraska state and local governments collect $1,000 more per person than the comparison states.
Additionally, she says on a per person basis, Nebraskans pay 52% more in personal income than these same states.
Curry says the best approach Nebraska can take in this situation is moving closer to other faster growing states that have lower taxes for taxpayers as a whole.
To view the Removing Barriers in Nebraska report, the website is PlatteInstitute.org/GoodLife.