NFFV Action Request

Upcoming Revenue

Committee Hearing

Friday, March 3, 2023

1:30 PM, Room 1524

Support

LB79, AM314, LR6CA, & LR7CA

EPIC Option - Prohibit government entities from imposing any taxes other than retail consumption taxes and excise taxes

Where does EPIC tax revenue come from?

The question many have is, without tax revenue from the areas listed above, how will our state be able to finance its daily operations? The short answer is that tax revenue would be replaced by a consumption tax on all new goods and retail services, except groceries. The waterfall chart below illustrates where our tax revenues come from under the EPIC Option, estimated for 2026. There are three components that make up the total EPIC Option tax base. Starting on the left side of the chart is the $60 billion retail tax base we currently have. Moving right, add on $75 billion to the sales (or what will become the consumption) tax base. This addition is current sales that are tax exempt. An example would be a consumption tax on a retail service not currently taxed. Add another $27 billion to the sales tax base. This $27 billion is the dynamic effect of reducing the tax burden on Nebraska. With less tax burden, citizens will spend more. All three of these components were calculated by Beacon Hill Institute. The summation of the three is the new tax base with EPIC Option, $162 billion. A consumption tax rate of 7.23% would give the state $11.7 billion in tax revenue. This is Nebraska's estimated annual budget for 2026, which creates a revenue neutral change.

Highlights!

There is so much more to the EPIC Option, it would be impossible to cover it all in one Minuteman Alert. However, here are a few of the many highlights:

• EPIC tax will start on day one with an estimated 7.5% tax on all new goods and retail services, this estimate drops to 6.52% by 2026.
• No taxes will be charged on business to business transactions
• No taxes will be charged on used goods
• You will finally own your home. You won't have to pay the state of Nebraska rent in the form of property taxes.
• You have control over your taxes. You can adjust your taxes by adjusting your spending or by buying used.
• It simplifies the tax system. No more loopholes and tax breaks for the select few
• It's a fair system to all Nebraskans!

You can learn more about EPIC tax at www.epicoption.org.

Lets Summarize:

EPIC Consumption Tax -

The nuts and bolts of it

• Taxes all retail services of consumers
• Catering, dry-cleaning, etc.
• Tax imposed at time of service
• Retail business collects and pays tax
• Taxes only new goods
• Tax imposed at time of sale
• No tax on used goods
• No tax on business inputs
• Retail business collects and pays tax
• Eliminates other taxes, except excise
• No taxes on income, property, sales, inheritance, etc.
• State funds counties, cities, schools & other state agencies
• Local control remains strong with local units of government submitting their budget to their county commissioner

How to be heard? 

Take action, your voice is powerful make it heard. LB79, AM314, LR6CA, & LR7CA committee hearing is scheduled for Friday, March 3, 2023.

How to be heard? Here are three ways:

• Most Effective: Testify in person. Going to the Committee hearing and sharing YOUR story with committee member Senators is very impactful. For first time in person testifier here are some helpful hints. 
• Very Effective: Submit written testimony. If you can't be there in person then submit written testimony. Not sure how to do that, click here. Note; written testimony needs to be submitted by noon the business day before the committee hearing.
• Effective: Email your position letter to the Committee Senators and CC your own Senator. For a listing of the Revenue Committee Senators click here. Note; emails need to be sent by noon the business day before the committee hearing. It's not likely these emails will be included in official hearing minutes though there is a better chance Committee Senators will see your comments. You can request they be added to meeting minutes in your email to Committee Senators.

Not sure what to say?

Listed below are thought starters. Build your story around one or two of them. Quantity is not as important as a short heart felt personal story.

Here are three strong arguments to support this sound legislation:



• This bill allows Nebraskans to finally own their homes by not paying the state rent in taxes.

• This is a fair tax system that balances the tax burden by not giving exceptions and loop holes to individuals and entities.

• As Nebraskans we would have the ability to manage our own taxes by controlling spending or buying used goods.