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Neb. drops plan to end personal, corporate income taxes

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    William La Jeunesse reports on Gov. Heineman's decision

  • Duration 2:08
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-- -- governor now dropping plans for controversial overhaul of the State's tax system had this past now.

Nebraska would join the list of seven -- without a personal income tax but the governor Dave Heineman wanted to take a step further and also eliminate the State's corporate income tax.

We like and that's and -- story highlights of the fight's not just in Washington is -- on taxes.

Well yeah -- -- has actually would happen Nebraska bill is a lot like the tax reform debate in Washington the president says he wants to raise money by.

Closing loopholes and ending tax breaks and Republicans of course prefer that to raising personal income taxes so Nebraska this Republican governor proposed something similar.

Wanting to raise billions by closing loopholes enjoyed -- business then use the money to essentially replace or get rid of the personal income tax.

I've had a number of governors who come up to me and said hey look we applaud what you're doing you're gonna be more competitive.

In -- Governor Perry of Texas only well I know you're gonna catch up to me and I got to be prepared to compete even more in the future.

So so the politics.

Bill looks kind of -- of tax reform right you close the loopholes for business rather and raise or in this case eliminate the personal income tax so what happened and William what happened there.

Well what happens when main street weeks K street and you know some politician tries to take away the special piece the tax code.

The lobbyists from the churches the hospitals the manufacturers agriculture.

All of whom of -- these generous tax breaks for decades.

They swarm the State Capitol and do -- special interest do when they're threatened they circle the wagons to protect their bottom line and they killed the deal.

Those are industries we should be working -- protect and enhance rather than hinder.

With a negative impacts that would come from the governor's tax proposal.

So -- to -- -- next year but take away is when you hear about tax reform.

The administration says it wants to close these loopholes number one Washington's been doing this for decades and he's powerful special -- -- are gonna fight back.

Is it taxpayer really gonna win bill.

We'll see them do William thank you William lines and us on that story in Los Angeles.

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