Editorial (Final Draft): Single Consumption for Nebraska Consumers

A bill proposal could introduce a new, revolutionary tax unseen by people across the nation. This new single consumption tax is both widely supported and criticized all for different reasons.

The introduction of Amendment LR300CA would do away with all forms of consumption tax for a single, more sustained tax. The Single Consumption Tax would be a fixed rate depending on the income that would benefit the entire state. Citizens and the unicameral body should approve of this new proposal and its revolutionary ideas.

To start, a consumption tax is any tax placed on a purchased good or service. As an example, an Excise Tax is a tax placed on goods related to alcohol and tobacco products. Consumption taxes are usually determined by federal and state governing bodies on the type of good. The rate of tax applied to the good can vary on whether it is considered to be a necessity (like any food product) or a luxury. Using this perception, the government chooses the set rate for the type of good.

The first and most unique aspect of the proposal would be to do away entirely with all other forms of consumption tax. Income tax, sales tax, and property taxes would all be eliminated for Nebraskans. This would eliminate any type of “hidden taxes” as described by the proposer, Senator Steve Erdman. Erdman believes the Single Consumption Tax will really help the more impoverished people of Nebraska.

The income tax rate in Nebraska ranges from 1.8% to 2%. Because of this, Nebraska is ranked as one of the top 10 most burdensome states in the country for income taxation. Once the income tax is removed, Erdman hopes for people to flock to Nebraska for both retirement and occupational living.

As Erdman claims, one of the main appeals of the new proposal would be a mass rebate. Citizens with families or those who are at risk of being impoverished would receive a tax return every month based on their living status and income (the same way citizens are taxed is decided).

Those on the opposite side claim that the proposed single consumption tax would take more from the middle class in order to pay for those under the poverty line. Another potential issue seen by those on the opposition believe that the new tax proposal would also tax food for the first time. Erdman also has a way to fix this potential issue.

Another way to cut costs and maximize spending potential is presented within the proposal. Several government establishments build around taxes would be deconstructed and decommissioned. This would potentially help the Nebraskan government to put money into other, potentially more important government foundations.

We as Nebraskans should consider this proposal, as it would cut down severely on taxes we would have to pay on a daily basis. The “hidden” taxes would vanish, leaving more money in your pocket. Come general election season we will see if the rest of Nebraska is ready to embrace these new ideas.