Pete Ricketts Believes That The Middle Class And The Poor Have It Too Easy
Most previous legislative sessions have been marked by a shortage of available funds to spend on tax cuts and programs. In the recent past, the senators paid careful heed to the fiscal notes attached to the bills. However, the 2022 session has been unusual since the legislature has had a huge windfall to spend. Nebraska received $1 billion in federal funds from the American Rescue Act and the Biden boom produced the strongest economic growth since Reagan’s “Morning in America” in 1984. (Incidentally, every D.C. Republican voted against the American Rescue Act.)
The most important issue in the current session was who was to be rewarded with this rare windfall — the wealthy or all Nebraskans. Pete Ricketts’ legislative agenda and the votes of the senators were a clear indicator of their priorities. Ricketts and his allies in the unicameral demonstrated that they believe that rich people don’t have enough money and that the poor and middle class have it too easy.
Ricketts’ refusal to apply for federal housing assistance is a good example of the priorities of the billionaire governor and his allies. The former T.D. Ameritrade executive claimed that he didn’t apply for the funds due to alleged fiscal responsibility concerns but refusing this assistance won’t save the taxpayers any money. Instead, the funds will simply go to other states.
Senator Matt Hansen sponsored a bill to override Rickett’s foolish refusal to help out distressed tenants. (Somebody should’ve told Ricketts that the money would ultimately end up in the bank accounts of landlords.) Unfortunately, Hansen’s attempt to override Ricketts’ veto fell one vote short — the vote count was 29–16.
Ricketts’ supporters in the legislature opposed the rental assistance due to their so-called “opposition” to socialism and fear that people will become too dependent upon government. (Those same “concerns” apparently don’t come into play when taxpayer money funds the wealthy and corporations, though.)
“This failed override vote is breathtaking when considering the message it sends about the Legislature’s priorities,” Nebraska Appleseed’s Economic Justice Director Ken Smith said in an email statement. “When it comes to spending on lakes, waterways and buildings there is resounding support. When it comes to supporting human beings struggling to recover in hard times, consensus is lost.”
The ironic impact of this veto is that Lincoln and Omaha will still get rental assistance but the other 91 counties will get nothing. Ricketts’ refusal to apply for housing assistance and subsequent veto will benefit the blue leaning areas of Nebraska and stiff his supporters in the GOP part of the state. Ricketts and his followers in the legislature hurt their own supporters.
A similar divide came into sharp relief in the debate over Ricketts’ $900 million tax cut bill that provided tax breaks to high income earners and corporations. According to the Open Sky Policy Institute, 84% of Ricketts’ income tax cuts would go to the richest 20% of Nebraskans and 29% would go to the top 1%. Moreover, 83% of the corporate tax cuts would reward out of state taxpayers.
The Democratic state senators pointed out that this tax legislation would leave behind a significant number of Nebraskans. According to the Omaha World Herald: “Those left out would include people who do not own property, do not get Social Security benefits and whose incomes fall below $40,676 for singles or $81,352 for married filers.”
In response to this glaring inequity in the bill, Senator Wendy DeBoer introduced an amendment that would’ve cut taxes for those left behind. In response, Senator Lou Ann Linehan claimed that the state can’t afford a middle class tax cut. (Linehan has never expressed any concerns about our ability to afford tax breaks for the wealthy and corporations.) Linehan carried the day on the amendment and it was rejected by a 26–18 margin.
“These tax cuts are bad news for most Nebraskans,” said Rebecca Firestone, executive director for the OpenSky Policy Institute. “The wealthy and out-of-state corporations will come out way ahead while in time, everyday Nebraskans will likely end up footing the bill by way of cuts to services they need or increases in other taxes and fees, once the federal funds that are currently bolstering our economy stop flowing.”
Senator Patty Pansing Brooks did an excellent job in describing this legislative session: “We need to just have a title for this session — how to help the wealthy.”
The Nebraska GOP believes that these tax cuts for the wealthy will end the brain drain of young Nebraskans. Apparently, they believe that giving young peoples’ landlords and employers another tax cut will convince them to stay in Nebraska. It’s laughable.
Democratic candidate for governor, Senator Carol Blood contended that we can convince young people to stay in Nebraska by providing more inclusive communities and higher paying jobs. “Nebraska needs to raise minimum wage, work on universal childcare, build affordable housing, value diversity and engage all Nebraskans in decisions that affect their lives,” said Blood.
The definition of insanity is doing the same thing over and over again and expecting different results. Electing another Republican will perpetuate the problems of higher taxes, dysfunction in state government and the exodus of young people from our state. The likes of Pillen and Herbster aren’t serious about governing — they want to wage divisive culture wars to pander to the most extreme members of the GOP base.
State Senator Carol Blood has the experience to actually tackle Nebraska’s problems. She is the only candidate talking about genuine issues and solutions. If we are going to elect Carol Blood governor, we have to do more than vote for her. We have to contribute both our time and money to her campaign. We can do this! Let’s get it done!