State Senator Galen Hadley, of Kearney, is among the Nebraska lawmakers looking for a way to reform the state tax system, including the possibility of eliminating the state income tax.
Hadley said at a meeting of the Nebraska Tax Modernization Committee Tuesday that supporters are pursuing the idea first proposed by Gov. Dave Heineman earlier this year of eliminating the state income tax "more systematically to make sure we do it the right way."
Heineman pulled back the idea of reducing or eliminating Nebraska's income tax after it received an abundance of criticism about the new taxes that would have replaced the lost revenue.
Sen. Pete Pirsch, of Omaha, said legislators would have to find $2.5 billion in new taxable transactions to make up for the loss of income tax.