LIBA is supporting a bill in the Nebraska Legislature that would lower the state personal and corporate income tax.  LB357 is an attempt to keep more businesses in Lincoln!  Below are several excerpts from a letter submitted to our Senators from a Lincoln business owner who has moved his corporate operations from Lincoln to Florida.  This letter from Paul Zoz, owner of Bizco Technologies, should be read by every Nebraskan:

Years ago when the Nebraska enacted the state income tax, the state and the country were in a different place and time.    Today we live in a new world, where many people can work from anywhere virtually, long distance phone calling is non-existent, and fellow employees and customers are a video phone call away.    This change in our environment allows for a leveling of the competitive landscape between states at a rate never experienced before.   People, particularly the young and capable entrepreneurs and executives that we so badly need to keep in this state, now have a broad choice of where to locate, work and raise their families.  

In 2010, my wife and I had a small technology firm located in Lincoln.   This particular business did almost all of its business outside of the state, and therefore was not subject to residing in any particular physical location.    After careful consideration of the cost of remaining in Lincoln, we decided to relocate the business to Florida where there was a better tax environment, including no personal income tax.   This environment since that time has proved very beneficial for our business when we recruit talent to join our team in Florida as most cases they can realize nearly a 7% “bump” in their personal take home pay due to no state income tax.  

When families, particularly those that make a good income in excess of $300,000 annually, evaluate paying $21,000 each and every year to remain in Nebraska vs. keeping that money and investing in something to benefit their personal income, the choice becomes much less difficult.  These are the very people that we should be seeking to retain here in Nebraska, but yet we essentially are asking them to pay a “penalty” for their success if they choose to remain here in Nebraska.   Some may argue that this bill only helps the wealthy, and what about the guy that has a family making $70,000 a year.   The fact is that by keeping these people in the state, and keeping their businesses in the state, the families making $70,000 a year will ultimately prosper and see their income increase.  More businesses staying in the state means more competition for jobs, which leads to job competition, which leads to our workforce making more money.   I would also point out that often the jobs that are “transportable” are higher than average paying jobs, which are the jobs we want and need in the State of Nebraska.  This bill is a step in the right direction, increasing the “break point” in which people will be considering relocation vs. residency.  

Although I might argue that this bill does not go far enough in reducing the top tax rates, LB357 will have a positive impact on Nebraska over time, and likely will keep some businesses from leaving the state.   I encourage all Senators committed to keeping Nebraska’s future competitive to support this bill.
-Paul Zoz, Bizco Technologies, 7950 O St., Lincoln, NE 68510


 LIBA studies and promotes these types of issues that are important to businesses and our community.  If you have an interest in joining LIBA, please call me at 466-3419.  LIBA membership is not restricted to just businesses.  We also have “individual” memberships for those who want to help influence our local government decisions.