Friday, February 8, 2013

Lawmakers consider raising income tax on rich

Lawmakers consider raising income tax on rich:
Lawmakers consider raising income tax on rich

(AP) — A bill inspired by Omaha billionaire Warren Buffett that would increase state income tax rates on the rich and bring in more than $42 million in its first year was brought before lawmakers Friday.

The new income tax rates under Conrad's bill would increase from 6.84 percent to 7.74 percent for individuals earning more than $400,000 a year, and married couples earning more than $450,000.

Conrad said Nebraska's income tax system has always mirrored the federal tax system and she'd like to see that tradition continue.

"From a policy prospective we have to ask ourselves does it make sense to tax hard working Nebraskans families and working families at the same level as less than 1 percent of Nebraskans who are in that very, very high earning capacity or to make some slight adjustments for people who could pay a little bit more," she said.

The Legislature's Revenue Committee heard the bill, along with a second measure by Conrad that would eliminate state income tax reductions for capital gains and special dividends as a result of or during employment.

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