2022 Nebraska Tax Burden Study

Nebraska’s 2022 Tax Burden Study explores how different tax changes ripple through the state’s economy, reshaping household income, business activity, and government revenue. Using a computable general equilibrium model, the study shows how a $100 million cut in either sales tax or income tax would boost disposable income, investment, and job creation, though with differing effects across industries and income groups. Sales tax reductions tend to benefit lower- and middle-income households more, while income tax cuts primarily advantage higher-earning Nebraskans. The analysis offers policymakers a clearer view of who truly bears the tax burden and how tax shifts influence Nebraska’s long-term economic health.