Federal tax cuts could raise Nebraska taxes by $220 million

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LINCOLN, Neb. (AP) -- Nebraska taxpayers could end up paying more to the state this year unless lawmakers halt automatic changes that were triggered by the Republican congressional tax plan, including the elimination of popular tax exemptions.

The state Department of Revenue estimates the law signed by President Donald Trump would prompt changes generating an additional $220 million for state government this year.

Nebraska's system is changing because lawmakers have connected many parts of it to the federal tax code, leading to automatic shifts when Congress passes new tax legislation.

Lawmakers have introduced two bills that seek to negate the effects on most taxpayers, but at least one of the proposals will face resistance from senators who want to use the revenue to avoid state budget cuts. Lawmakers face a projected $173.3 million shortfall.

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