Gov. Heineman staking out his tax ground early

A billion dollars is a lot of money in a state like Nebraska, even spread out over four years as proposed by Gov. Dave Heineman.

If he can pull it off, his tax cut proposal could really make a difference for the taxpayers it targets.

A family of four with an adjusted gross income of $30,000 a year would save $120 or 44 percent, a family earning $50,000 would save $227 or 20 percent and a family earning $75,000 would have a $504 or 19 percent reduction in income taxes.

Heineman is correct in his contention that "middle-class families are the economic driver of our state."

He's also correct in his contention that we're taxed too much, but look closer at Heineman's news release announcing his plan:

"Several national tax policy surveys rank Nebraska in the Top 10 highest tax burden states in terms of state and local tax as a percentage of personal income. One survey put forward by the Tax Foundation ranks Nebraska as the state with the sixth highest tax burden in 2006, up from 20th in 1986."

But that raises the question: Is the problem really taxes that are too high, or incomes that are too low? Should the solution be cutting taxes, and asking Nebraskans to accept state services that are under-par, or raising incomes through economic development?

Heineman answers that question himself: "This reform proposal also represents a significant investment in opportunities to create a 21st Century economy that can compete favorably on the global stage, while providing an opportunity to create jobs here in our state. Good job growth is vital in ensuring a strong future for Nebraska."

In the face of ballooning Medicaid costs and issues like our own Republican River water crisis, there's little chance Heineman will be able to get everything he's proposing, even with a Legislature largely comprised of rookies.

We're sure our politically astute governor knows that.

But staking out his ground now puts him in a stronger position once the tough bargaining begins.