EPIC option would replace several taxes with consumption taxes

MADISON - The EPIC option is gaining traction with many Nebraskans across the state, and Madison County Commissioners got to hear all about it at yesterday’s county commissioners meeting.

Steve Jessen with the EPIC Option strategy team says the legislation, introduced by Senator Steve Erdman, would eliminate all Nebraska property, income, inheritance, corporate, and sales taxes and eliminate double taxation within the state. He says it would also impose a consumption tax rate on all services and new goods below 8%.

"There'll be no taxes on used cars or used homes. No consumption tax on gas or diesel fuel since it is subject to an excise tax, and consumption and excise taxes are the only two taxes that would be available on our plan."

Jessen says one of the opposition’s major concerns is that they believe local control would be lost. He says they’ve addressed this concern by putting it in the hands of the county commissioners.

"We broke the state down into five regions containing 18 or 19 counties each. Those counties will send a commissioner and they will vote on their regional representative."

Jessen says currently, 60% of Nebraskans pay 100% of the taxes, and with the consumption tax, all Nebraskans will contribute, there would also be no special tax exemptions for government agencies and non-profits.

He says a study done by the Beacon Hill institute shows that if this is implemented, the state population would increase by 1.9% by calendar year 2026 and investments increase by $8.6 billion, also in 2026.

The full results of the study can be found online at epicoption.org.