Gov. Dave Heineman has asked the Legislature's tax-policy committee to kill both of his tax-reform proposals so lawmakers can start a new, inclusive discussion over Nebraska's tax climate.
Heineman said Saturday that he has asked the Revenue Committee's chairman, Sen. Galen Hadley, to indefinitely postpone the tax proposals that he championed in his State of the State address.
The Republican governor's bills would have eliminated Nebraska's income tax, or at least reduced what retirees pay. But the proposals faced resistance from farm groups, hospitals and manufacturers who would have lost sales tax-exemptions in the process.
Heineman says he wanted to heed concerns from those groups that the discussion was moving too quickly.
Hadley says the committee will hold hearings throughout the state for input on how to modernize Nebraska's system.
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