Smith argues that cutting income tax rates and changing the brackets would be the best way to spur Nebraska’s economy and help the state compete with its neighbors.

“I am absolutely 100 percent committed to doing something,” he said. “Doing nothing is not an option if we are to see job growth in our state.”

Smith would make the plan possible during a tough budget year by balancing the income tax reductions with increased sales tax revenue, making it revenue-neutral for the state.

He is looking at eliminating some sales tax exemptions, expanding sales taxes to more services and collecting sales taxes on online purchases. Among the options, he said, would be eliminating the sales tax exemption for food.

“I have various versions and various scenarios,” Smith said. “We should be able to find at least $100 million.”

In the longer term, he is looking to phase in additional cuts as the state’s economy grows. The cuts would be triggered automatically when tax revenues reach specific thresholds.

The Platte Institute for Economic Research, an Omaha-based think tank, is pushing for a similar approach, arguing that income taxes should be the priority because they increase the cost of working and investing in a state.