Nebraska bill to avoid tax increase wins initial approval

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LINCOLN, Neb. (AP) -- A bill designed to prevent the new U.S. tax law from triggering an automatic tax increase in Nebraska has won initial approval from lawmakers.

Senators gave the measure first-round approval on Thursday with a 38-0 vote.

The bill seeks to neutralize most of the effects of the law approved by Congressional Republicans and President Donald Trump.

Nebraska's tax system is changing because lawmakers have connected many parts of it to the federal tax code, leading to automatic shifts when federal tax laws change. The Nebraska Department of Revenue has said the federal law would generate an additional $220 million for the state unless lawmakers intervene.

Some lawmakers warn the bill could create future budget challenges if the department's estimates are off.

Two more votes are required to pass it.