General Assembly Vote Tracker

HB101, 102, 106, 107, 108 – The Fair Tax Plan

Delaware’s flat tax system, beneficial to the wealthy and to corporations, for some reason is deemed sacrosanct even among liberal Democrats. When you bring up adding more progressive tax brackets above $60,000 so that a middle class family of four struggling to get by on $60,000 doesn’t pay the exact same income tax rate as a duPont heir living off $600,000 of interest income a year, people look at you like you are Linda Blair with a rotating head vomiting pea soup.

For years, progressives have been pushing for more progressive tax rates on higher incomes. The furthest we got was Governor Markell raising taxes on the highest brackets while sparing the lower brackets during the Great Recession to help close a similar gaping budget deficit.

In prosperous budgetary times, adding two or more new brackets for higher incomes would be a simple issue of fairness. Faced with a deficit of this scale, it is a simple issue of necessity, ESPECIALLY when Governor Carney proposes to increases taxes in each income bracket by .2 to .4 percent while eliminating itemized deductions.

Thus, we have 5 pieces of legislation that seeks to counter Governor Carney’s budgetary proposals from some of the more progressive lawmakers in the General Assembly. Senate Pro Tem McBride and Speaker Schwartzkopf would be wise to follow their lead rather than the raise taxes on everyone, even the poor, approach proposed by Governor Carney.

First, HB101 increases the tax levied and imposed on both domestic and foreign limited liability companies.

AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO TAX ON LIMITED LIABILITY COMPANIES.


UPDATED: 4/18/2017


SPONSORS: Kowalko, Henry, Baumbach, Lynn, Williams


YES VOTES:


NO VOTES:


HISTORY: Placed in the House Revenue & Finance Committee 3/28/17


STATUS: Waiting for a hearing in committee.


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HB102 increases the maximum annual corporation franchise tax in the amount of $60,000, raising it from $180,000 to $240,000. Governor Carney called for the franchise tax ceiling to be lifted from $180,000 to $250,000 for the largest companies, with another level of $200,000 being added and lower ranges would be adjusted as well. I don’t see HB102 doing that however, not in its current language.

AN ACT TO AMEND TITLE 8 OF THE DELAWARE CODE RELATING TO CORPORATION FRANCHISE TAX.


UPDATED: 4/18/2017


SPONSORS: Kowalko, Henry, Marshall, Lynn, Matthews, Mitchell, Osienski


YES VOTES:


NO VOTES:


HISTORY: Placed in the House Revenue & Finance Committee 3/28/17


STATUS: Waiting for a hearing in committee.


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HB106 creates a new tax bracket at $125,000 with a rate of 7.10%, and an additional bracket of $250,000 with a rate of 7.85%.

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX.


UPDATED: 4/18/2017


SPONSORS: Kowalko, Henry


YES VOTES:


NO VOTES:


HISTORY: Placed in the House Revenue & Finance Committee 3/29/17


STATUS: Waiting for a hearing in committee.


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HB107 gives us a second option in addition to HB107. It also creates two new tax brackets at $125,000 with a rate of 7.10%, and $250,000 with a rate of 7.85%, but it also provides a tiered reduction of the otherwise available itemized deduction based upon the individual’s taxable income. I suppose this is being added to entice Governor Carney and his notion of shared sacrifice.

Notice how it has more sponsors than just the straight bill for two new tax brackets. Seriously, why are Delaware Democrats so scared about raising taxes on the wealthy?

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX.


UPDATED: 4/18/2017


SPONSORS: Kowalko, Henry, Baumbach, Bentz, Lynn, Mitchell, Osienski, Williams


YES VOTES:


NO VOTES:


HISTORY: Placed in the House Revenue & Finance Committee 3/29/17


STATUS: Waiting for a hearing in committee.


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HB108 is my preferred bill, because it adds the two new tax brackets but then gives a 0.05% tax cut to all the original brackets. The new new tax brackets would be at $125,000 with a rate of 7.05%, and an additional bracket at $250,000 with a rate of 7.80%. But again, without the tiered reduction of the itemized deduction that Governor Carney proposes, it loses all but two sponsors.

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX.


UPDATED: 4/18/2017


SPONSORS: Kowalko, Henry


YES VOTES:


NO VOTES:


HISTORY: Placed in the House Revenue & Finance Committee 3/29/17.   Bill was stricken on 4/4/17.


STATUS: Bill is dead.


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