Lt. Gov. Rick Sheehy said he expects there will be some backlash from agencies that receive sales tax exemptions based on the governor's tax reform plan.
Tuesday morning, Gov. Dave Heineman unveiled his tax reform plan for Nebraskans in his State of the State address that would include the elimination of the individual and corporate income taxes.
The funds would be made up through removing exemptions for some of the numerous agencies in Nebraska that currently do not pay sales taxes.
"We're looking at $5 billion in exemptions," Sheehy said in a speech at the Hastings Municipal Airport at noon Tuesday. "Even if we reduce the number in half that will take care of all income tax, military tax, corporate tax and social security retirement tax."
Sheehy and Heineman were touring the state Tuesday talking with citizens and government officials about both the governor's tax reform package and his budget proposal.
Heineman is expected to introduce legislation within the next week to lay out his plan for discussion about how the exemptions would be removed and what groups would be affected.
Sheehy said he expects some groups to petition both the administration and Legislature regarding their need for an exemption.
"There are some organizations that say the fairest tax is the tax paid by someone else," he said.
However, Sheehy said removing the income tax would help to make Nebraska more competitive to business and industry that consider moving into Nebraska.