PARA PUBLICACIÓN INMEDIATA
May 21, 2024
Contacto: José Flores, Jr., Director de Comunicaciones
402-215-1052, jose@nebraskademocrats.org
***Nebraska Democratic Party News Press Release for 5-21-2024***
Nebraska Democratic Party Statement on the EPIC Option Ballot Initiative Campaign
LINCOLN, NE – The Nebraska Democratic Party Chair Jane Kleeb issues the following statement regarding the Eliminate Property, Income, and Corporate (EPIC) Option latest press conference:
“The EPIC ballot initiative would leave all Nebraskans paying more sales tax. This is not the solution to high property taxes. We must stop electing Republicans who make campaign promises but never deliver on real tax reforms. The EPIC ballot campaign further shows the major divisions in the Republican Party where their base is at odds with statewide and members of Congress spelling trouble on their side of the aisle for the November elections.”
Fondo
The EPIC Tax Option looks to eliminate almost all categories of taxation and replace them with a broad-based consumption tax as Nebraska’s primary revenue source. The consumption tax would apply to items such as the purchase of new goods, out-of-pocket medical bills, and various professional services. Enacting the EPIC Option would make the Cornhusker State the first to ever eliminate its system of collecting property tax in our nation. Calculations by the Tax Foundation suggest that the EPIC Plan would require a statewide consumption tax rate of at least 21% to be sustainable. The current EPIC Option calls for a 7.5% statewide consumption tax, far below any threshold to be sustainable. Local governments would also be able to enact their own consumption tax, adding to the burden. A move to the EPIC Option will encourage Nebraskans close to neighboring states to spend their tax dollars outside of our state with lower consumption rates, thereby creating an unfair burden on those not close to bordering states. While the overall goal of the EPIC Option is to lessen the burden of property taxes across the state, the potential ballooning effect of the consumption tax rate will encourage Nebraskans of all ages to leave the state for more attractive and lower-tax rate states. Analysis by multiple tax entities and local business groups conclude that enacting the EPIC Option would result in an unprecedented fiscal crisis, estimating that the state of Nebraska and local governments would lose the majority of their existing tax revenues.
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