This op-ed was submitted by AAF Nebraska Legislative chair Robert Richardson to the Lincoln Journal Star where it was published on May 22, 2024.
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He’s back at it again.
After failing to pass one of the largest tax hikes in state history, Governor Jim Pillen is taking his show on the road, holding town hall events in communities across the state in an attempt to gin up support for the very proposal that failed in the state legislature.
Under his proposal, Governor Pillen wanted to raise taxes on everything from small businesses who advertise, to veterinary services, and even dry cleaning.
Here’s the deal: tax hikes are unpopular, period. Especially in a red state like Nebraska. A tax on advertising would have a devastating impact on our state’s economy and small business community.
The fact that the governor is once again spending his political capital and time on this is confusing and concerning.
There is not a person in the state who would not like to see their property taxes lowered, but that is not the debate we are having. The debate we are having is how we are going to accomplish the goal.
The governor and his allies in the legislature think the right way to do this is by devising a massive tax scheme and shifting costs on to others – on to the small businesses that are the fabric of our local communities. A digital advertising tax means less advertising, which leads to less sales and ultimately less revenue collected by the state.
Under this plan everybody feels the burden. Entrepreneurs, recent college students, and families will see costs passed on to them for products and services. Many small business owners will face a double whammy, those who don’t own property wouldn’t see a property tax reduction, just higher costs if the governor has it his way.
What kind of state do we want to have?
What should we be known for?
Should we be known as a state that empowers small businesses or a state that picks winners and losers and passes tax schemes?
To me, and many of our fellow Nebraskans, the choice is clear.
Republicans are supposed to solve problems by reducing the size of government and actually cutting taxes, not shifting them on to others. That is certainly the Republican Party that I grew up with.
We didn’t send Republicans to Lincoln to take more money out of our pockets.
Nobody is denying that property taxes are too high and that something needs to be done to address this. But what Governor Pillen is pushing as he tours the state is the wrong approach – this shouldn’t be done at the expense of Nebraska businesses.
The idea that a tax on advertising tax would only affect a handful of businesses is simply a farce. While the digital tax targets only the largest companies, the burden of that increase would be passed to small business owners. Every Nebraskan in every corner of the state would feel the impact of this tax. I need to emphasize that a digital advertising tax would also impact agricultural related businesses and businesses in rural communities. The shift in tax still places a great burden on those who the Governor wants to help with the property tax relief.
Despite the serious economic and legal flaws this proposal presents itself with and his failure to pass it this legislative session, the governor is still trying to get this done.
Republican and Democrat legislators, small business owners, and hardworking Nebraskans sent him a clear message: “no.”
It’s time for the governor to go back to the drawing board and actually come up with a plan that will lower property taxes without shifting taxes. Until that happens, he will face the same opposition from lawmakers and the Nebraskans who elected him.
Thank You,
Robert Richardson
