LINCOLN, Neb. (AP) — Nebraska Gov. Pete Ricketts is proposing an income tax cut for corporations and nearly 419,000 residents whose incomes rise into the state’s top bracket.

The Republican governor said he would seek to lower the top rates to 5.84%, down from the current 6.84% for individuals and 7.25% for corporations that will go into effect next year.

The plan would reduce state tax collections by $178.8 million by fiscal year 2025. Like many other states, Nebraska is flush with cash from a better-than-expected pandemic economy and billions in federal stimulus payments that went to most Nebraska taxpayers.