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Stories tagged with “Nebraska

Economy

State-Level Tax Cuts Don’t Boost Job Growth, Study Says

A slew of Republican governors have proposed massive tax cuts that they say will help generate job and economic growth in their states, with some pushing for the abolition of income taxes altogether. That is a misguided approach, though, according to an analysis of past tax cuts from the Center on Budget and Policy Priorities.

The five states that implemented deep tax cuts during the 1990s experienced slower job growth over the next economic cycle than states that did not, and none of those states experienced income growth that exceeded inflation, CBPP found:

Similarly, the five states that enacted the deepest tax cuts during the boom years of the middle and late 1990s saw job growth over the next full economic cycle (2000-2007) of less than 0.3 percent per year, on average, compared to 1.0 percent for the other states (see graph). They also had slower income growth than the rest of the nation on average.

CBPP’s report also noted that of eight major reports that studied the effects of state-level tax cuts on economic growth, six found that the cuts did not spur growth. Another found inconsistent results and only one supported the idea.

Still, Republicans in Kansas, Ohio, Indiana, Wisconsin, North Carolina, Louisiana, and Nebraska are pushing massive tax cuts that largely benefit corporations and the wealthy under the banner of boosting economic growth. Those tax cuts will leave lower and middle class families with higher tax rates and fewer services on which they depend. What they won’t deliver, however, is a stronger state-level economy.

Health

HIV-Positive Woman Advocates For Better Sex Ed So Kids Will Learn More About The Virus Than She Did

In Nebraska, state lawmakers are considering updating the public school system’s sexual education standards so that each school district’s health classes will be required to meet comprehensive, medically accurate standards. As legislators debated the measure this week, one Nebraska resident testified in favor of the sex ed bill by citing her own personal story: since she doesn’t believe she was fully educated about the HIV virus, she wants to prevent other students in her state from making the same mistakes she did.

Janine Brignola urged lawmakers to ensure that Nebraska’s youth don’t grow up to be as “naive” as she was about sexually transmitted infections:

Janine Brignola grew up in a rural area near Ord, Neb., but graduated from high school in Lincoln.

Not once, said the 30-year-old who is HIV-positive, was she warned of the dangers of the virus that causes AIDS at the schools she attended.

Her peers, Brignola said, told her it was a “dirty disease” that could kill her, but she believed that only the sexually promiscuous or “junkies or prostitutes got HIV.”

“I was naive and thought Nebraska was not a place that it could happen,” she said.

That lack of information about HIV isn’t specific to Nebraska. In fact, CDC data shows that HIV infections throughout the country are most concentrated in regions where students don’t learn about the virus in school. Just 20 states mandate both sex education and HIV education, and even those states may not necessarily require health classes to adhere to basic standards to ensure scientific accuracy.

But, just as Brignola highlighted in her testimony, it’s crucial to educate adolescents about effective methods to prevent HIV — rather than feeding them shame-based messages about sexual promiscuity, as if sexual health somehow doesn’t exist outside of “junkies and prostitutes.” Public schools started teaching information about sexually transmitted infections in the 1980s, at the height of the national HIV/AIDS epidemic, but religious conservatives rolled back much of that progress under former President George W. Bush, when sex ed classes became replaced with abstinence-only programs in states across the country.

Now, the CDC worries that today’s young people aren’t getting the message on HIV. Young Americans continue to put themselves at risk for the virus, and half of HIV-positive individuals between the ages of 13 and 24 aren’t even aware they have it.

LGBT

Attempt To Repeal Omaha’s LGBT Protections Fails

Last March, the City Council of Omaha, Nebraska passed an ordinance to protect LGBT individuals from discrimination in employment and public accommodations. A coalition of conservatives led by the Omaha Liberty Project then led an effort to repeal the protections through a referendum. It now seems that despite being “darn close,” they have failed to collect enough signatures to force the vote, so the protections will stand. Nondiscrimination protections have been controversial across Nebraska, with Lincoln and Grand Island both defeating similar policies. Attorney General Jon Bruning (R) believes they’re unconstitutional and Gov. Dave Heineman (R) believes people should vote on whether discrimination is allowed.

Economy

‘Fundamentally Unfair’: How States Tax The Richest 1 Percent At Half The Rate Of The Poor

The poorest Americans are subject to a tax rate at the state and local level that is twice as high as the tax rate paid by the wealthiest earners thanks to “fundamentally unfair” state tax laws, according to a new report from the Institute on Taxation and Economic Policy (ITEP). Middle-class taxpayers also pay higher effective rates than the wealthy.

When state, local, property, and sales taxes are taken into account, the poorest 20 percent of Americans pay an average effective tax rate of 11.1 percent, the report found. The middle 20 percent pays a 9.4 percent rate, while the rate for the top 1 percent is just 5.6 percent. The lack of progressive income taxes and an over-reliance on consumption taxes are the primary culprit, the report says.

In the 10 most regressive states, the poorest 20 percent pay a rate as much as six times as high as the rate for the richest 1 percent. Four of those states — Washington, Texas, Florida, and South Dakota — have no income tax; one, Tennessee, has a limited income tax that only applies to dividends and interest. In these five states, half to two-thirds of revenue comes from sales and excise taxes, well above the national average of one-third.

Still, Republicans across the country are pushing tax plans that would replace income taxes — typically the only form of progressive taxation at the state level — with sales taxes. Republicans in Nebraska, Kansas, North Carolina, and Louisiana have advanced such plans, even though their state tax systems are already regressive.

In Louisiana, worst of the four, the poorest 20 percent pay 9.2 percent of their income in sales taxes, while the wealthiest 1 percent pay just 1.3 percent. Even in North Carolina, the best of the four, the poor pay six times as much of their income in sales taxes as the richest one percent. Shifting to a tax code that relies solely on sales taxes would make these states even worse.

Economy

Nebraska Gov. Proposes Elimination Of State Income Tax At Expense Of Poorest Residents

Nebraska Gov. Dave Heineman (R) became the latest Republican governor to propose the elimination of his state’s income tax during his State of the State speech last night, a move that would eliminate $2.4 billion in revenues each year. To replace the lost revenue, Heineman proposed eliminating at least half of the $5 billion in sales tax exemptions Nebraska offers annually, but he did not specify which of those exemptions he wanted to eliminate, KearneyHub.com reports:

“This about the future of Nebraska,” Heineman told state lawmakers. “Nebraska has good schools, affordable homes, a strong work ethic and a low unemployment rate, but taxes are too high.” [...]

He had been promising for weeks to deliver a “bold” tax plan during his address. He outlined a bold vision, to be sure, but didn’t include the rest of the story — exactly how the state would shift taxes to offset the $2.4 billion now collected in state income taxes.

Louisiana Gov. Bobby Jindal (R) and Republicans in North Carolina have also proposed replacing income taxes with increased sales taxes in their states, a move that would result in a tax cut for businesses and the wealthy while raising taxes on the poor. Jindal’s plan would give the top one percent of Louisiana residents a 2.3 percent tax cut while raising taxes on the bottom 80 percent. The poorest 20 percent would see a 3.4 percent increase.

Though the details of Heineman’s plan are still unclear, it is hard to imagine the poor not picking up the burden, since sales taxes are inherently regressive. The poorest 20 percent of Nebraskans already pay 6.4 percent of their income in sales taxes, according to the Institute on Taxation and Economic Policy. The top one percent pays just 0.8 percent. The poorest fifth of Nebraskans pay 11.1 percent of their income in taxes overall, compared to just 7.1 percent for the richest one percent. Heineman has ruled out ending sales tax exemptions on groceries, but other exemptions, such as those for hospital beds, dorm rooms, and other medical costs would level a direct hit on the state’s poor and middle-class residents.

Health

Nebraska Lawmakers Threaten To Override Their Governor’s Opposition To Expanding Medicaid

As recalcitrant Republican governors still refuse to consider expanding their state’s Medicaid programs under Obamacare — despite several studies confirming that the optional Medicaid expansion will save states money and strengthen the hospital safety net system — state lawmakers have begun to pursue creative solutions to extend Medicaid coverage to their low-income constituents.

After Gov. Rick Perry (R-TX) rejected a state-wide Medicaid expansion in Texas, several counties investigated the possibility of moving forward on their own, potentially raising the eligibility threshold for their local Medicaid rolls even if the program wasn’t able to be expanded throughout the entire state. And in Nebraska, State Sen Jeremy Nordquist (D) has taken the lead on crafting a bill to expand Nebraska’s Medicaid eligibility levels that he plans to introduce when the state legislature reconvenes in January. Even though Gov. Dave Heineman (R) remains staunchly opposed to the health care reform law and would likely veto a bill to participate in Obamacare’s Medicaid expansion, Governing reports that Nordquist wants to find a way to override his veto:

Nordquist says he believes the legislature could muster up enough votes to override Heineman’s veto. It takes 30 votes from the 49 lawmakers in the state’s unicameral legislature to overturn a governor’s veto. There will be 17 Democrats and two independents who will likely caucus with them in 2013, which means at least 11 Republicans would have to buck their national party line and support a key provision of the ACA. [...]

How will Nordquist bring them around? It’s a fiscal argument, he says. The state legislative fiscal office estimated that Nebraska will spend $123 million by 2020 on the expansion. But there will also likely be savings and new revenue. The fiscal office projected the state would save $100 million by 2020 because of the ACA provision that guarantees coverage regardless of preexisting conditions, which will eliminate the need for a state program that provides subsidies for high-risk insurance buyers. That money alone almost offsets the cost of the expansion, Nordquist notes.

And Nordquist is confident in his ability to override his governor because he’s done it before. In 2010, after Heineman vetoed a bill that would have extended prenatal care to undocumented immigrants through the state’s Children’s Health Insurance Program — claiming that Nebraska shouldn’t have to fund health care for immigrants who didn’t enter the country legally — Nordquist successfully built a coalition of 15 Democrats and 15 Republicans who voted to override Heineman’s veto. This year, Nordquist already has support from Nebraska’s Republican health committee chair, who has confirmed she will propose the bill because she supports Medicaid expansion.

Nordquist was able to wrangle bipartisan support in 2010 partly by “appealing to the pro-life beliefs of the Republicans” when making his case for extending health coverage to the Nebraska residents who need it most. That could prove be a good strategy for this legislative fight, too. National faith leaders have already urged Republican governors to expand the “pro-life” Medicaid program because “depriving struggling families of healthcare is wholly incompatible with the teachings of our faiths and the ideals of our nation.”

More than 21 million low-income Americans stand to gain health coverage under Medicaid if governors like Heineman choose to participate in Obamacare’s expansion of the program.

NEWS FLASH

Nebraska City Advances Narrow Protections For Gay Employees | Last month, the City Council of Grand Island, Nebraska voted down an ordinance to add sexual orientation protections to the city’s nondiscrimination policies. In a slight reversal, the Council has now passed a narrow policy that will protect employees of the city, but will not having any impact on private employers, nor will it cover housing and public accommodations. Still, it passed with a 6-4 vote with an 8-2 vote to override a veto by Mayor Jay Vavricek. The state of Nebraska does not offer any statewide employment protections based on sexual orientation or gender identity.

NEWS FLASH

Nebraska City Rejects Nondiscrimination Protections | With a vote of 8-2, the City Council of Grand Island, Nebraska has rejected an ordinance that would have created various nondiscrimination protections for the LGBT community, including in employment, housing, and public business. Councilman Mitch Nickerson said he didn’t want the city to become “gay-friendly” and a local business owner claimed the protections would have “unintended consequences.”

NEWS FLASH

Nebraska Archbishop Urges Priests To Help Repeal Nondiscrimination Protections | A social conservative group known as the Heritage Coalition is trying to repeal the sexual orientation nondiscrimination protections passed in Omaha, Nebraska earlier this year, just as it did in Lincoln. Omaha Archbishop George Lucas is joining the effort, urging all the priests in his diocese to speak on behalf of the repeal effort and recruit their parishioners to do the same. This is a blatant attempt to enable anti-gay discrimination in employment, housing, and public accommodations discrimination, and the Catholic Church is unabashedly leading the charge. (HT: AKSARBENT.)

NEWS FLASH

Report: Medicaid Expansion Would Help Nebraska’s Economy | If Nebraska expands Medicaid under Obamacare, a report from the University of Nebraska shows that the expansion would be a boon for the state economy. It reduce the “silent tax” of higher premiums for consumers that are caused by the cost of uncompensated care. The state would spend up to $160 million to extend Medicaid to an additional 90,000 Nebraskans, but the cost of providing care to the uninsured would shrink by $650 million between 2014 and 2019. Nationally, states could save about $4 billion by expanding their Medicaid programs.

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