EPIC tax solution proposed

SIDNEY -- The move to change the tax structure in Nebraska is moving forward, and changing shape.

Steve Erdman, representing the state's 47th district, has proposed a consumption tax in exchange for doing away with other taxes.

"The bill would repeal state income tax, inheritance tax, state and local sales and use taxes and real and personal property taxes and impose a consumption tax on taxable property and services of 7.5 percent beginning Jan. 1, 2026. Counties, cities and villages could impose their own consumption tax within their boundaries," Erdman said in a column dated for today.

A public meeting was held in Sidney this morning explaining the EPIC Option. EPIC is short for "Eliminate all Nebraska Property, Income, Corporate (including Inheritance) taxes."

Erdman recently introduced LB79 that creates EPIC. 

The meeting was held at the Cheyenne County Community Center to explain EPIC and how supporters hope to see it become state law. Mark Bonkeiwicz and Steven Jessen explained what EPIC is designed to do, and how a consumption tax could result in more revenue than the current tax system.

"You're only going to pay consumption tax one time," Bonkeiwicz said. 

The Consumption Tax as proposed by EPIC imposes a consumption tax on all services and new goods at a rate below 8 percent with no taxes on groceries. The Consumption Tax will also eliminate double taxation, "would be fair to everyone," according to a fact sheet presented to attendees this morning. 

EPIC is expected to be achieved in two steps: a vote of the people to amend the Nebraska constitution by a vote of the people to amend the State Constitution  on the November 2024 ballot, or by a vote of the legislature.

EPIC Option is in the process of fundraising to contract with a company to promote the Consumption Tax concept.