Income tax reduction passed

Many Nebraskans will see a modest tax reduction under a bill passed by the Legislature April 5.

LB970, introduced by Belleve Sen. Abbie Cornett at the request of the governor, establishes new individual income tax brackets that will lower income taxes slightly. Existing tax rates were adjusted to the following rates for 2013:
• 2.46 percent for an individual making up to $2,400 or a married couple making up to $4,800;
• 3.51 percent for an individual making between $2,400 and $17,500 or a married couple making between $4,800 and $35,000;
• 5.01 percent for an individual making between $17,500 and $27,000 or a married couple making between $35,000 and $54,000; and
• 6.84 percent for an individual making more than $27,000 or a married couple making more than $54,000.

For a married couple filing a joint return with a taxable income of $50,000, it is estimated the reduction would equate to a savings of $40 in 2013 and $68 in 2014 compared to 2011.

Senators passed the bill on a 39-9 vote.