Governor Pete Ricketts is rallying Nebraska’s business community behind his plan to cut the state’s top income tax rate.
Small business owners from around the state gathered with Ricketts at the Capitol on Monday to tout the measure, which would lower the top rate from its current 6.84 percent to 5.99 percent over eight years, as long as the state’s revenue growth exceeds 3.5 percent.
Ricketts argues that lowering the top tax rate would stimulate the economy by encouraging businesses to hire more people and invest more in their operations.
Critics of the plan point to tax cuts in Kansas, which saw no major economic growth but triggered a budget crisis when it cut income taxes.
Ricketts says his proposal is different because it’s incremental and relies on cutting expenses first.