Nebraska lawmakers fight over $82M business tax deduction

Nebraska News

The State Capitol stands in Lincoln, Neb., Friday, July 1, 2020. Nebraska lawmakers will resume their session on July 20, 2020, after a four-month pause triggered by the coronavirus pandemic. They still have major issues to address, including a property tax package and an upgrade of Nebraska’s biggest tax incentive program, but all of that may be overshadowed by the pandemic’s impact on tax revenue. (AP Photo/Nati Harnik)

LINCOLN, Neb. (AP) — A measure that would generate $82 million in Nebraska state tax revenue by eliminating a deduction for high-income earners has hit a snag in the Legislature after business groups objected to the idea.

The proposal debated by lawmakers would restore some of the estimated $250 million the state is expected to lose over the next three years as a result of the federal coronavirus tax cuts for businesses.

Some lawmakers cast the measure as a tax increase on businesses that are still struggling from the coronavirus pandemic and mounted a filibuster to keep it from coming to a vote.

After three hours of debate, senators left the issue unresolved and adjourned for a four-day weekend.

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