Under the proposal, Erdman explained, the tax would be applied to a much broader base than the current sales tax. It would be apply to all new goods — but not used ones — and all services.

That would include many items not now covered by the sales tax, such as food, medicine and new homes. Used cars and homes that have been previously lived in would not be taxed. Services would include vehicle repair, legal advice and haircuts.

A study commissioned by the Nebraska Fair Tax group concluded that the consumption tax rate of 11.08% would bring in about $9.9 billion a year, which they estimated would be enough to replace individual and corporate income taxes, state and local sales taxes, property taxes and the gas tax.

Erdman said state residents would get regular “prebate” checks aimed at keeping the new tax from being a burden on low-income people and to cover the taxes paid on necessities. The check amounts would be based on the amount of spending by people at the federal poverty level.

Businesses would not have to pay the tax on materials used in their business. Shears bought by a barber, a tractor bought by a farmer or milk bought for resale by grocer would not be taxed.