Cornhusker State News

The National Federation of Independent Business (NFIB), a prominent advocate for small businesses in the United States, has announced its legislative priorities for Nebraska in 2025. Ryan McIntosh, NFIB Nebraska State Director, emphasized the importance of supporting small businesses amid rising costs and regulatory challenges. "Nebraska relies on its small business community," McIntosh stated. "With rising costs and burdensome regulations, our small businesses are struggling to keep their doors open. During this 2025 legislative session, lawmakers must prioritize pro-small business policies that help Main Street businesses grow and thrive."

NFIB Nebraska's agenda includes three main objectives: opposing paid sick leave mandates, delivering property tax relief, and repealing the inheritance tax.

Regarding paid sick leave, Initiative 436 mandates that all private employers in Nebraska provide paid sick leave to employees, with exceptions only for railroad employees under federal law. Small employers with fewer than 20 employees must offer 40 hours annually, while larger employers must provide 56 hours. NFIB argues that this requirement imposes undue strain on businesses already offering competitive benefits or unable to do so due to financial constraints. The organization plans to challenge this mandate and seek exemptions for smaller enterprises.

Property tax relief is another priority as Nebraska ranks among the top ten states with high property tax burdens. Despite rising valuations, local government spending remains unchecked. Surveys indicate Nebraskans pay more in property taxes and insurance than mortgages. Past attempts at imposing "soft caps" on spending growth have not effectively reduced these burdens. NFIB aims to secure meaningful reductions in property taxes benefiting small businesses.

Lastly, NFIB seeks the repeal of Nebraska's inheritance tax, one of only five states still imposing such a levy. Unlike the federal estate tax which exempts most taxpayers, the state inheritance tax can affect anyone owning or inheriting property and varies significantly across counties. It impacts capital negatively by discouraging investment and business expansion while driving wealthy taxpayers out of the state. NFIB contends that it unfairly penalizes small business owners transferring assets to heirs.