Heineman signs tax cut measure but says more needs to be done

LINCOLN, Neb. (AP) Nebraska Gov. Dave Heineman has signed his signature tax cut package into law.

The new law lowers the rates of the three lowest income tax brackets in 2013. In 2014, the law expands the brackets so that more income is taxed at the lower rate.

Heineman says the watered down version of his original plan is only the beginning of what's needed to lower taxes for Nebraskans.

The Republican governor said Tuesday he will likely re-introduce a measure next year that would eliminate a county inheritance tax. The proposal was stripped out of the original tax bill that he introduced in January.

Lawmakers approved the governor's tax plan last week, 39-9. Critics have said the tax package will cut into future services, with a relatively small benefit to individual taxpayers.