Gov. Dave Heineman wants to eliminate the income tax. He says that would improve the state's economic climate and help families and small businesses.
Income tax generates around $2.5 billion for the state. In its place, he recommends doing away with sales tax exemptions (with the exception of food). However, those exemptions total around $5 billion. So not all of the exemptions would have to be undone.
The governor has not announced which exemptions he would like to do away with.
Here are some of the items where Nebraskans currently do not pay sales tax: