Expert Advises Nebraska Lawmakers Not to Tax Business Inputs
LINCOLN, Neb. (AP) — A
sales-tax expert says Nebraska should avoid taxing equipment and raw
materials that are used to produce consumer goods.
University professor John Mikesell told lawmakers Wednesday that the
state should focus instead on taxing products once they're bought for
household use. Mikesell says businesses that are taxed during production
pass the expense along to consumers through higher prices.
comments came during a meeting of the Legislature's Tax Modernization
Committee, which is looking for ways to make Nebraska's tax system
fairer, more efficient and competitive.
Mikesell says a retail
sales tax driven by household consumption is a better way to finance
government, and does less to stifle economic growth.
He also suggested taxing food, though lawmakers say that idea is a tough sell.