Governor calls for eliminating income tax in overhaul of tax system

LINCOLN, Neb. (AP) _ Gov. Dave Heineman is calling for an overhaul of
Nebraska's tax system, saying the state needs to get rid of its individual and corporate income taxes and make up the lost revenue by shutting off as much as $2.4 billion in tax breaks for businesses.

The Republican governor unveiled his tax plan Tuesday during his annual State of the State address to lawmakers.

Heineman says his plan would keep the state competitive with two neighboring states, Wyoming and South Dakota. Both have no individual income tax.

Heineman says he will introduce several options for lawmakers in the next few days that would eliminate sales tax exemptions for businesses. The governor did not specify which tax breaks he wants to eliminate, except to say he wouldn't support taxing food.

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