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Economy

Nebraska Gov. Proposes Making His State’s Regressive Tax Code Even Worse For The Poor

The state of Nebraska already has a regressive tax code that asks lower-income families to pay more than the state’s wealthiest residents. According to the Institute of Taxation and Economic Policy, the poorest 20 percent of Nebraskans pay an average of 11.1 percent of their annual income in state and local taxes, while the richest 1 percent pay just 6.1 percent of theirs, thanks to the state’s heavy reliance on regressive property taxes.

Gov. Dave Heinemen (R), however, seems to believe that the poor aren’t doing their part in his state. Despite saying his “highest priority” was “tax relief for Nebraska’s hard-working, middle class taxpayer,” Heinemen used his State of the State speech to unveil a tax proposal that would do next to nothing to help Nebraska’s poorest residents while providing sizable tax breaks to the rich, Citizens for Tax Justice found:

In his recent State of the State speech, Nebraska Governor Dave Heineman unveiled his three-pronged tax reduction proposal: income tax rate reductions and broadening of income tax brackets, a reduction in the corporate income tax rate, and complete elimination of the inheritance tax. [...]

Nebraska’s tax structure is already regressive and asks more of lower income families than better off families…The Governor’s proposal does nothing to reduce property taxes, does little to assist the lowest income Nebraskans, and would actually make this disparity worse.

As CTJ notes, Heinemen’s proposal wouldn’t replace the $40 million generated by the inheritance tax, just a year after his last budget eliminated state aid to local governments. In Omaha, the county board passed a resolution opposing Heinemen’s plan because it would “force” them to raise property taxes, thereby increasing the tax burden on lower- and middle-class Nebraskans.

Reducing the income tax rate, meanwhile, would have a similar effect, forcing the state to rely even more heavily on regressive property taxes instead of the more progressive income tax structure.

Justice

GOP Bill Tries To Drive Wedge Between Undocumented Servicemembers And Undocumented College Students

During Monday night’s debate, the two Republican presidential front runners voiced their support for a modified DREAM Act that covers only those undocumented immigrants who are willing to serve in the United States military, and not those who attend a college or university in pursuit of a degree.

Now, a Florida Republican has introduced a bill to do just that:

Inspired by Monday night’s Republican presidential debate over immigration, Rep. David Rivera, R-Miami, filed a bill that would give young people who serve in the military — not college students — a path to U.S. citizenship.

“If somebody is willing to die for America, then certainly they deserve a chance at life in America,” Rivera said.

Rivera’s plan is called the Adjusted Residency for Military Service Act — the ARMS Act. It’s a variation on the DREAM Act, which would grant legal status to some children of undocumented immigrants who were brought illegally to the United States by their parents.

The new push for a military-only version of the DREAM Act is a not terribly subtle attempt by the Republican presidential nominees to create a wedge between military DREAMers and the college student DREAMers who have been lobbying for the bill for years. Rep. Rivera says that he is introducing the bill because it is all that Congress will likely be able to pass, even though polls show the DREAM Act has overwhelming support from every demographic, including Republicans.

Romney, Gingrich and Rep. Rivera are also at odds with former Florida Governor Jeb Bush, who yesterday said that immigration was a “secret weapon for economic competitiveness,” a view shared by President Obama during his State of the Union address on Tuesday.

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