Analysis by Deciles of Nebraska Income Tax Burden Ranked by Nebraska Expanded Income

Table G2: Analysis by Deciles of Nebraska Income Tax Burden Ranked by Nebraska Expanded Income
Tax Year	Number of Returns	Nebraska Expanded Income (1)					Nebraska Net-Liability (2)
Tax Year	Number of Returns	First 7 Deciles mil.$	8th Decile mil.$	9th Decile mil.$	10th Decile mil.$	Top 1% of Returns mil.$	First 7 Deciles mil.$	8th Decile mil.$	9th Decile mil.$	10th Decile mil.$	Top 1% of Returns mil.$
1995	678,430	7,806.7	2,987.9	3,870.2	8,702.6	2,999.2	133.6	76.7	120.1	372.5	140.0
1996	701,425	8,387.4	3,227.3	4,195.4	9,724.3	3,414.4	146.7	84.8	134.3	427.8	164.6
1997(a)	717,401	9,042.2	3,483.2	4,537.4	10,758.6	3,839.7	147.8	87.8	140.9	463.3	184.2
1998	727,835	9,665.2	3,715.1	4,883.6	12,418.1	4,747.2	164.0	96.5	156.7	515.6	204.8
1999	737,138	10,219.8	3,912.7	5,134.8	13,626.1	5,481.3	181.1	105.6	171.1	569.1	226.3
2000	738,826	10,702.6	4,078.8	5,365.9	14,176.5	5,616.0	194.0	112.5	182.2	595.6	233.7
2001	734,309	10,861.2	4,092.9	5,345.3	12,959.1	4,740.7	193.3	110.7	179.0	545.4	205.0
2002	721,885	10,734.6	4,049.9	5,287.3	12,584.2	4,572.3	185.4	107.8	174.9	517.5	189.1
2003 pr.	720,561	11,074.9	4,161.9	5,457.7	12,725.4	4,446.0	196.8	115.0	187.6	550.5	201.3
Tax Year		Nebraska Expanded Income Shares					Nebraska Net-Liability Shares
1995		33.41	12.79	16.56	37.24	12.83	19.01	10.91	17.09	53.00	19.92
1996		32.85	12.64	16.43	38.08	13.37	18.48	10.68	16.92	53.90	20.74
1997(a)		32.50	12.52	16.31	38.67	13.80	17.60	10.46	16.78	55.17	21.93
1998		31.50	12.11	15.92	40.47	15.47	17.58	10.35	16.80	55.28	21.96
1999		31.07	11.90	15.61	41.43	16.66	17.64	10.28	16.66	55.43	22.04
2000		31.18	11.88	15.63	41.30	16.36	17.89	10.37	16.80	54.93	21.55
2001		32.66	12.31	16.07	38.96	14.25	18.80	10.77	17.41	53.04	19.94
2002		32.87	12.40	16.19	38.54	14.00	18.81	10.94	17.75	52.51	19.19
2003 pr.		33.14	12.45	16.33	38.08	13.30	18.74	10.95	17.87	52.43	19.17
Tax Year		Effective Tax Rate (b)					Nebraska Tax Burden Index (c)
1995		1.71	2.57	3.10	4.28	4.67	0.57	0.85	1.03	1.42	1.55
1996		1.75	2.63	3.20	4.40	4.82	0.56	0.84	1.03	1.42	1.55
1997(a)		1.63	2.52	3.11	4.31	4.80	0.54	0.84	1.03	1.43	1.59
1998		1.70	2.60	3.21	4.15	4.31	0.56	0.85	1.06	1.37	1.42
1999		1.77	2.70	3.33	4.18	4.13	0.57	0.86	1.07	1.34	1.32
2000		1.81	2.76	3.40	4.20	4.16	0.57	0.87	1.07	1.33	1.32
2001		1.78	2.70	3.35	4.21	4.32	0.58	0.87	1.08	1.36	1.40
2002		1.73	2.66	3.31	4.11	4.14	0.57	0.88	1.10	1.36	1.37
2003 pr.		1.78	2.76	3.44	4.33	4.53	0.57	0.88	1.09	1.38	1.44

(1) Nebraska Expanded Income is defined as follows:

Total Income (line 22 Form 1040), plus Tax Exempt Interest (line 8b Form 1040) plus untaxed portion of IRA distributions, plus untaxed portion of Pension and Annuities, plus untaxed portion of Social Security and Railroad Retirement income, plus s-corporation and limited liability company loss distribution from non-Nebraska sources plus bonus depreciation and enhanced section 179 add-back, plus qualified dividends minus Non-Nebraska Source Income.

(2) Nebraska Net-Liability is defined as:

Nebraska liability net of non-refundable credits plus Credit for tax paid to another state minus refundable child care credit and minus Beginning Farmer credit.

pr. preliminary - contains only returns filed by August 29 2003.

The most likely impact of the late filed returns will be in the "Top 1%" group.

The late filed returns will be included in the analysis in next year's issue.

(a) LB401, Nebraska Individual Income Tax Rate Cut.

(b) Effective rate is defined as Nebraska net-liability as percent of Nebraska expanded income.

Index < 1 income share is greater than net-liability share

Index > 1 income share is less than net-liability share

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Table G2: Analysis by Deciles of Nebraska Income Tax Burden Ranked by Nebraska Expanded Income