Dave Nabity for Governor

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Nebraska's Issues
LIBERATING OUR ECONOMY

CREATING A COMPETITIVE 21ST CENTURY NEBRASKA
Let me start by saying, I believe our best days are ahead of us. Nebraskans have a work ethic second to none along with an entrepreneurial drive that sets us apart. And while we possess an independent spirit and a strong desire to take care of our own families, we also have the compassion to take care of those in need. As I travel the state I see over and over again, Nebraskans are a good and proud people.

What Nebraska needs is a tax policy that will be the catalyst in transforming our state into a competitive force in the 21st century.

And as I listen to the concerns of young and old alike and ask citizens what they want from state government, the answer is always the same. What they want is a stream lined state government with no waste, efficient in delivering necessary government services. But what people want even more is state government to quit undermining their efforts in seeking economic prosperity by continuing to cripple them with burdensome taxes. Nebraskans are looking for elected officials in Lincoln to strengthen the foundation of the state’s economy by lowering taxes, which will encourage and reward hard work and investment. What Nebraska needs is a tax policy that will be the catalyst in transforming our state into a competitive force in the 21st century.

JOB CREATION
Nebraska must create an economic environment able to attract new businesses to our state and encourage existing businesses to keep their operations in Nebraska.

The evidence is clear - high taxes have a negative impact on job creation.

While there are a variety of factors affecting a state’s business climate such as schools, the work force and the infrastructure, the rate of taxation is one of the dominant factors in a company’s decision regarding where to start and/or expand a business. To quote Scott Hodge, Executive Director of the Tax Foundation: “The most effective restraint on state taxes is the knowledge that business will take jobs and prosperity out of state if taxes become unmanageable.” Richard Vedder, a professor of Economics at Ohio University states: “High taxation leads to reduced economic growth.” The evidence is clear - high taxes have a negative impact on job creation.

JUST THE FACTS
Often times it's difficult for elected officials to acknowledge the economic benefits of reducing taxes because of the pressure to increase spending. But there’s no question reducing taxes is the needed stimulus in creating economic activity, prosperity and job growth, which in turn will, as history has shown, bring more money into the treasury. On the other hand, increasing taxes is an albatross around the neck of a state’s economy, slowing its growth. The following is a case in point. From 1990 to 1996 ten tax-cutting states had economies that grew 33%, 75% higher than ten states that raised taxes.

There's no disputing the fact that slow economic growth and depopulation are both partly the result of states that continue to raise taxes.

Income for families of four in those same tax-cutting states increased by $1,600 more than in the tax-raising states. Most importantly, the tax-cutting states gained 1.84 million jobs – double the national average – while the tax-raising states had zero net growth in jobs. High taxes also affect the migration of people from state to state. From April 1st, 1990 to July 1st, 1999 approximately 2,600,000 people – 1,000 persons every business day during that period – moved from high tax states to low tax states. There's no disputing the fact that slow economic growth and depopulation are both partly the result of states that continue to raise taxes.

RETIREES AND COLLEGE GRADUATES
Unfortunately, one of Nebraska’s most cherished treasures – our retirees – are leaving in favor of more tax-friendly states.

Policies that continue to drive out the wisdom and wealth of our retirees, along with the brain power of our college graduates, must be changed.

And because high taxes have a negative impact on job creation, college graduates are taking their diplomas and leaving Nebraska to seek employment in other states. In January, 2001, Charles Lamphear, Director, Bureau of Business Research at UNL reported the following in a survey of 300 people who had recently left Nebraska: “The most important reason cited for leaving the state, especially for younger respondents, was better career opportunities.” Dr. Larry Routh, Director of Career Services at UNL stated that a Career Services Report of 2002-2003 graduates showed 44% of respondents leaving Nebraska departed for better job opportunities elsewhere. Policies that continue to drive out the wisdom and wealth of our retirees, along with the brain power of our college graduates, must be changed.

NEBRASKA FAMILIES
It’s important to understand that in addition to stifling the creation of a robust economy, high taxes hurt Nebraska families directly by taking too much money out of their pockets. Taxpayers in Nebraska can pay up to 40% of their income in federal, state and local taxes.

President Bush cut taxes for 91 million taxpayers and 23 million small businesses across the nation. It's now time for the state of Nebraska to do its part.

President Bush cut taxes for 91 million taxpayers and 23 million small businesses across the nation. It's now time for the state of Nebraska to do its part. I pledge to you one of my top priorities as governor will be to work with the legislature to put into place tax policies not only encouraging investment and job creation in Nebraska, but also policies allowing our families to keep more of what they earn. It's the right thing to do. It makes it easier for families to save for their children's college education, for their own retirement, for that rainy day, and it even makes daily life a bit less stressful.

TAXES AND GROSS STATE PRODUCT: WHERE WE RANK

Currently, Nebraska has the 10th highest tax burden for retirees. Colorado, Iowa, Kansas, Missouri, South Dakota and Wyoming – our surrounding competitors – are more tax-friendly toward retirees. We can do better.
Nebraska has the 14th highest state and local tax burden as a percent of income. Colorado, Iowa, Kansas, Missouri, South Dakota and Wyoming are lower in this area of taxation. We can do better.
Nebraska has the 8th highest gas tax in the nation. Colorado, Iowa, Kansas, Missouri, South Dakota and Wyoming have lower gas taxes. We can do better.
When it comes to having a friendly small business environment, Nebraska ranks 35th out of 50 states. South Dakota, Wyoming and Colorado are ranked 1st, 7th and 8th best, respectively. According to the Tax Foundation, a non-partisan research organization, every state bordering Nebraska offers a friendlier small business environment than the "good life" state. We can do better.
Property taxes continue to be a growing burden on farmers and ranchers, businesses, families, single tax payers and especially retirees who are on a fixed income. Currently, 30 states have lower state property taxes per capita than does Nebraska. We can do better.
According to Michael LaFaive, Director of Fiscal Policy, Mackinac Center for Public Policy, "From 1990 through 2001, Nebraska has seen its per-capita Gross State Product ranking among the states fall from 22nd to 25th. Gross State Product measures the value of all goods and services produced within the geographical borders of a state. It is arguably the most used metric of a state's overall economic health." We can do better.

TRANSFORMING NEBRASKA
Lower taxes will result in new business start-ups, the expansion of existing businesses, better-paying jobs, more retirees staying in Nebraska and college graduates seeking employment in Nebraska.

With the right tax policies we will show our fellow citizens from all across the nation why Nebraska is the good life state when it comes to economic opportunity.

By lowering taxes we will not only grow the economic pie and offer a prosperous future to all our citizens, but we will reach our potential as the economic powerhouse of the Midwest. With the right tax policies we will show our fellow citizens from all across the nation why Nebraska is the good life state when it comes to economic opportunity. When Nebraska became a state Lincoln and Omaha were nothing more than a desert. Everything we experience today was built and grown by people with hopes and dreams. Those people transformed Nebraska. It’s now time to transform Nebraska into the Jewel of the Midwest. Let's begin the transformation by lowering taxes.

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