By Eric Pool

Updated July 20, 2023

By now many of us have gotten the "yellow card" again. Tis the season. Our assessor is feverishly trying to redo and update assessment so they are accurate for the properties. She is doing everything she can within the law to come down on the side of the people. A daunting task, definitely.

But there is a proposal to help fix all these outlandish property taxes. Its time to spread the taxes to the folks who are doing the consuming in the economy. This makes sure everybody has skin in the game. This option is EPIC.

We spoke with Steve Erdman (district 47 Senator) in regards to several topics. One of the topics that we are very excited about is called EPIC (Eliminate Property Income Inheritance Corporate) taxes. This options would eliminate all of those taxes in favor of a consumption tax. The tax rate would be on all services and NEW goods at a rate below 8%. This would put the taxes onto the people using the services and new items within the economy. Here are some of the great things that would change with this proposal.

These bullet point are pulled straight from EPIC Option Made Simple

*No taxes on groceries

*No consumption tax on Gas

*No taxes on used cars or previously owned homes

*No taxes on necessary business inputs (Example no tax on a farmer's combine, or plumber's wrench)

These things would eliminate double taxation, as well as, it would shift the tax burden to all people. Under the current system, 100% of the tax burden falls on 60% of Nebraskans, said Jessen. This same tax system has been used since 1967.  Now all would contribute. Another benefit of this program is that rent would eventually decrease, because of the elimination of property tax. There will be more spending money, because of the elimination of property and income tax. Allowing you to purchase items and only have the consumption tax to pay on goods and services you use. There will also not be a fluctuation of property taxes year to year cutting into your spending money. The consumption tax should stay stable. But, as revenue grows from increases in the economy, the legislator can vote to decrease the consumption tax rate.

EPIC also makes it more difficult for large corporations to purchase Nebraska farmland. Farmers and Ranchers will not have to sell due to ever increasing property taxes. Plus those who inherit land can keep it, because they are not subject to property tax or inheritance tax. 

EPIC will not cause medical and insurance rates to increase, plus out of pocket changes will be minimal because ALL people are paying the consumption tax. The portion insurance companies pay of medical bills are not subject to the consumption tax, because there are no taxes on business to business transactions. Hence, EPIC will not cause insurance premiums to rise.

Another great example from the EPIC review is stated here:

"If your current property tax is $3000 and your income tax is $1200, you would have to spend $53,846 on new goods and services to pay $4200 of taxes at a rate of 7.8% under EPIC. Now the tax man takes your $4200 and have no goods or services to show for it."

So overall this is a great relief to property owners, and it puts the taxes where they belong; the people who use new goods and services pay for the tax. It also prevents property owners from losing their land and property to ever increasing property tax and finally letting property owners TRULY own their property without fear of having it confiscated due to taxes.

Read more on EPIC.