Federal tax package creates uncertainty for Nebraska budget
Posted By: Channel 8 Eyewitness News
LINCOLN, Neb. (AP) _ Nebraska officials say the tax package working its way through Congress is creating a great deal of uncertainty for the state budget because it could affect tax collections.
Legislative Fiscal Office Director Michael Calvert told senators Thursday that the state’s finances face a significant risk that can’t easily be predicted.
Nebraska’s tax system is closely linked to the federal system, so changes at the federal level can influence the state’s tax collections. State officials also suspect investors may be reluctant to sell right now because they’re hoping for reduced tax rates on capital gains in the future.
The comments came during a meeting of the Legislature’s Tax Rate Review Committee.