Erdman introduces bill to replace all Nebraska taxes with sales tax

LINCOLN, Neb. (KLKN) — If one state senator gets his way, Nebraskans wouldn’t have to pay income or property taxes.

Sen. Steve Erdman of Bayard introduced the EPIC consumption tax in the Legislature on Thursday. EPIC stands for Eliminates Property, Income and Corporate taxes.

Erdman said the tax relief passed in recent years has been a “Band-Aid on an amputation.”

“So over the last eight years, we’ve given about a billion dollars in property tax relief, when in fact property has gone up $1.6 billion,” he said. “So it’s a decrease in the increase. And none of that puts us competitive with our neighbors as far as taxation goes.”

Under the proposed system, Nebraskans would pay only one tax to the state government: a sales tax of under 8% on all new goods and services.

Groceries, used cars and previously owned homes would not be taxed.

Businesses would also be exempt from paying taxes on supplies. For instance, a barber wouldn’t be taxed for buying shears.

There are two petitions going around that would allow the plan to go forward if the Legislature doesn’t pass Erdman’s proposal.

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