Opponents to Governor Heineman's proposal to eliminate the state sales tax tell lawmakers it would be counter-productive.
Nebraska-Iowa Equipment Dealers Association President Andrew Goodman warns that if Nebraska eliminates the sales tax exemption on tractors, combines and other farm equipment...farmers will simply buy from dealers in surrounding states. . .
 Andrew Goodman, president, Nebraska/Iowa Equipment Dealers Association; "not a problem"
To offset the loss of revenue from eliminating the state income tax, the governor proposes eliminating 2-point-4(B)Billion dollars in sales tax exemptions.

Manufacturers and farmers line up to oppose Governor Heineman's proposal to eliminate the state income tax.
Both say the elimination of sales tax exemptions needed to offset the loss of revenue would have diastorous effects on the state economy.
Farmer Stan Stobel of Scotts Bluff County says charging sales tax on farm equipment would greatly undercut profitability...and could even be a deciding factor in whether his son continues the family tradition of farming. . .
Stan Stobel, farmer, Scotts Bluff County; "in a new tax"
The state would need to eliminate 2-point-4(B)Billion dollars in sales tax exemptions to offset the loss of revenue if the state income tax is eliminated.

Opponents of Governor Heineman's proposal to eliminate the state income tax make their case before the Revenue Committee.
Open Sky Institute Executive Director Renee Fry insists the best state tax policy rests on a broad platform of taxes that includes an adequate "rainy day" fund. . .
Renee Fry, Ex. Director, Open Sky Institute: "in good times"
To offset the loss of state revenue from eliminating the state income tax, the governor proposes eliminating 2-point-4(B)Billion dollars in sales tax exemptions.

A representative of the Nebraska Chamber of Commerce tells a legislative committee that Governor Heineman's proposal to do away with the state income tax would hurt the state economy.
John Cederberg urges the Revenue Committee to kill the bill. . .

 John Cedarberg, speaking for Nebraska Chamber of Commerce; "another bill later"
Cederberg says the proposals to eliminate sales tax breaks enjoyed by businesses and farmers would cripple manufacturing and agriculture in the state.

Several farmers travel to the Capitol in Lincoln to testify against the governor's proposal to eliminate the state income tax.
The measure relies on ending certain sales tax exemptions to offset the loss of revenue if the state income tax is eliminated...some of which farmers enjoy.
Wilcox farmer Gale Lush urges the Revenue Committee to reject LB 405, the larger bill, as well as the less-sweeping measure, LB 406. . .
Gale Lush, farmer, Wilcox; "end result"
The Revenue Committee heard 9-and-a-half hours of testimony Wednesday. It hears testimony on the scaled-down version today (THU).

(image courtesy of stock.xchng)

(courtesy of Nebraska Radio Network)