Debate opens on LB974 millionaire surtax; opponents warn of capital flight
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
Senator Danielle Conrad introduced LB974, a narrowly targeted surtax on very high incomes intended to add progressivity to Nebraska’s tax code; opponents called it punitive and warned wealthy taxpayers could relocate, while proponents cited research that high‑income households tend to remain anchored by family and community ties.
Senator Danielle Conrad opened LB974 by describing the bill as a narrowly targeted excise tax on extraordinarily high incomes (she estimated the proposal would affect a tiny fraction of filers under 2024 data). Conrad said the goal was to add progressivity without undoing recent income and corporate tax cuts.
Opponents testified that a millionaire surtax would be damaging to Nebraska’s competitiveness. Doug Kagan (Nebraska Taxpayers for Freedom) called LB974 “raw socialism at its worst” and argued high‑income taxpayers and capital can move across state lines, producing revenue loss and adverse economic behavior. Alan Seybert reinforced that argument, citing Washington State experience and warning that surtaxes can drive tax avoidance and reduce economic activity.
Senator Conrad closed by pointing to academic reviews she said undermined the assumption that affluent households will flee in response to higher marginal taxes and noted she would follow up with research for committee members. The committee recorded proponent and opponent written testimony and closed the hearing without a vote.
No formal fiscal estimate or vote occurred during the hearing; committee members asked clarifying questions but did not move the measure forward that day.