Our view: Reviewing the tax code

Word began to spread on Monday that tax revenues for the state exceeded expectations. Today, Nebraska Tax Commissioner Doug Ewald confirmed that state coffers benefitted from revenues almost eight percent higher than earlier official estimates, totaling more than $4 billion for the fiscal year.

The amount ensured that cash reserves peaked at $679 million, making for the largest rainy day fund in Nebraska's history.

Granted, the state has hardly been struggling. But the numbers come as a welcome surprise.

Responding to the report, Gov. Dave Heineman urged the Unicameral to consider a round of tax cuts--also a welcome suggestion.

In March the body advanced a bill to establish a commission, charged with reviewing Nebraska's tax code. This was after lobbying from business and agricultural sectors broke the back of two more extreme measures seeking sales tax exemptions.

The Unicameral may now be inspired to consider appropriate reductions, particularly intriguing ideas that would relieve some pressure on agriculture. In 2012, lawmakers debated property tax revisions. Yet a number of fiscally concerned groups have been encouraging budget cuts before any discussion of tax breaks.

With the economy improving and state unemployment low, we believe the time is right for lawmakers in Lincoln to undertake a serious review of the tax code and search for cuts that could be applied modestly--rainy day funds can wash away very quickly, after all.