Nebraska is indeed facing a shortfall in their budget, but it is wholly of their own making. In 2023, lawmakers used the surplus to pass a personal and corporate income tax decrease. However, the surplus was largely due to one time Federal aid they received.
Now that the Federal aid has ended (and it ended because it was scheduled to end, not because Trump ended it), the tax revenues are not enough and the State is -$432M. They raided the rainy day fund for $150M, but all this does is delay the inevitable. The State was hoping that the decrease tax would spur growth and for the most part the State’s economy has been strong but steady, not exactly growing and nowhere near enough to cover this shortfall.
It’s very clear that the State has mismanaged the budget. You cannot use one time aid to fund long term tax cuts, that’s the intelligence of finding a lower paying job because you found a coupon. Nebraska’s Republican led State Legislature is pretty much the largest causer of harm to the State. Not to mention that they also passed LB 243 in 2023 which took a large amount of funding away from Schools, so outside of just ending public education, there’s not much more money they can extract from their favorite thing to extract money from.
But all that said, the State did it to themselves. No need for Trump to be involved.
The point is they’re going to transfer wealth from Blue states to Red states. It doesn’t matter if Red states have budget problems or not. This is just a pretext to rob and plunder political opponents.
Yes, this tweet is actually devoid of reality.
Nebraska is indeed facing a shortfall in their budget, but it is wholly of their own making. In 2023, lawmakers used the surplus to pass a personal and corporate income tax decrease. However, the surplus was largely due to one time Federal aid they received.
Now that the Federal aid has ended (and it ended because it was scheduled to end, not because Trump ended it), the tax revenues are not enough and the State is -$432M. They raided the rainy day fund for $150M, but all this does is delay the inevitable. The State was hoping that the decrease tax would spur growth and for the most part the State’s economy has been strong but steady, not exactly growing and nowhere near enough to cover this shortfall.
It’s very clear that the State has mismanaged the budget. You cannot use one time aid to fund long term tax cuts, that’s the intelligence of finding a lower paying job because you found a coupon. Nebraska’s Republican led State Legislature is pretty much the largest causer of harm to the State. Not to mention that they also passed LB 243 in 2023 which took a large amount of funding away from Schools, so outside of just ending public education, there’s not much more money they can extract from their favorite thing to extract money from.
But all that said, the State did it to themselves. No need for Trump to be involved.
The point is they’re going to transfer wealth from Blue states to Red states. It doesn’t matter if Red states have budget problems or not. This is just a pretext to rob and plunder political opponents.