Nebraska's Effort to Replace Taxes with Consumption Tax Falls Short of Signatures
ICARO Media Group
In an attempt to replace property, income, and corporate taxes with a consumption tax, a petition drive in Nebraska has fallen short of the required number of signatures. The petition, known as the EPIC Option Consumption Tax, aimed to secure signatures from 10% of the state's registered voters to amend the state constitution, which equated to approximately 123,000 signatures. Unfortunately, the group's more than 250 volunteer signature gatherers were unable to complete the task within the given timeframe.
The EPIC Option Consumption Tax petition organizers had until the end of the day on Wednesday to collect and submit the required signatures. State Senator Steve Erdman of Bayard and other leaders involved in the effort had initially celebrated a first hurdle in mid-May when they announced the collection of legally required signatures from at least 5% of registered voters in 38 counties. Initially, the focus was on lower population counties to meet the 5% requirement, but the campaign shifted its efforts towards urban and suburban areas in late May.
The petition organizers, known as the EPIC Option Team, acknowledged in an email to its petition circulators that they needed paid help to collect the remaining signatures from larger populated counties. They cited a spike in property valuations of over 9% this year as a factor that came too late to assist them in reaching their goal. The group expressed disappointment in their inability to gather the required signatures and attributed difficulties in fundraising to "misinformation and half-truths" spread by opponents. Critics argued that the consumption tax would lead to higher prices for everyday goods and pose a threat to local retail sales.
Opponents, such as former GOP gubernatorial candidate Brett Lindstrom, who served as a spokesman for the anti-EPIC tax group No New Taxes, warned of potential new taxes on healthcare, legal bills, prescription drugs, and home repairs. Lindstrom described the EPIC Option as an "EPIC mistake for Nebraska" and claimed that keeping it off the ballot would protect Nebraskans from excessive tax rates and increased costs in various areas.
State Senator Erdman and supporters of the EPIC tax maintained that the state's current tax system is unsustainable. While Governor Jim Pillen has been working on proposing a solution to the state's over-reliance on property taxes, Erdman plans to propose the EPIC tax during the expected special session later this summer. The petition organizers are planning a video conference meeting to thank volunteers and apply pressure to state senators during the session.
The EPIC Option Consumption Tax petition received some support from the Nebraska Republican Party, which helped connect the group to county GOP volunteers. Organizers began gathering signatures in December 2022. Critics of both the EPIC tax and the governor's previous proposals argue that they shift too much of the tax burden onto consumers, particularly those purchasing goods.
With the petition falling short of the required number of signatures, the EPIC Option Consumption Tax campaign will need to explore alternative avenues to bring about the desired tax changes in Nebraska.