BUSINESS AND AG SALES TAX EXEMPTIONS IN EXCHANGE FOR NO INCOME TAX?

(Nebraska Radio Network) -- NebraskaRadioNetwork.com reports that Gov. Heineman's plan to eliminate most business sales tax exemptions, as well as sales tax breaks enjoyed by farmers, would allow elimination of the state income tax.  Gov. Heineman told reporters during the news conference: "We grant $5 billion in exemptions -- and if you just eliminate half of them, you eliminate the individual income tax and corporate tax."  The story notes that the largest sales tax exemption targeted in the governor's plan totals $1.4 billion -- the exemption of sales tax on ingredients and component parts used by businesses, including manufacturers.  "Another big-ticket item is the sales tax exemption on energy used in industry, which totals $122 million."  A number of sales tax breaks enjoyed by farmers would be eliminated, according to the article, including $87 million in exemptions for ag chemicals, and $82.1 million in an exemption on gasoline and diesel used in farming. 

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