Bill to increase taxes for higher wage earners in DE
DELAWARE – State lawmakers are considering a bill that would create new tax bracket, which would raise taxes for the state’s highest earners.
House Bill 64 proposes creating new tax brackets for those at $125,000, with a rate of 7.10%; at $250,000, with a rate of 7.85%; and at $500,000, with a rate of 8.6%. We are told, those in favor of this say it couldn’t come at a better time, but those against it, feel the exact opposite.
“Those that are making, or earning quite a bit more will be able to contribute a bit more to the economy,” says Delaware state representative, John Kowalko.
House bill 64 would essentially create more fairness in the Delaware state income tax system, which Delaware state representative, Paul Baumbach, another sponsor of the bill adds, it will “have us be more representative of our region, and it certainly seems quite past time to do this, therefore it’s the right time to do it.”
No republicans are in support of this bill and Delaware state Representative, Timothy Dukes gave a statement saying, “Many Delawareans and small businesses are still struggling with the impacts of the on-going COVID-19 restrictions. Increasing the tax burden on any citizen at this time is not only callous, it will hurt everyone by hampering our economic recovery. Additionally, as we saw in the governor’s budget presentation last week, the state is currently enjoying a huge revenue surplus, so imposing a new tax hike lacks any justification.”
However, Rep. Kowalko states, this is “a harmless to any individual way of making a beneficial construct-block to our economy. I think that’s the best way I can describe it.”
Democrats in the house that sponsor the bill disagree with many republicans against the bill and say, they firmly believe this bill would only help the state’s economy in the long run.
“It’s much more beneficial for the broad economy than having a very top heavy benefit such as the 2017 tax cuts for the rich so this is a much better for the overall economy,” says Rep. Baumbach.
We’re also told, this bill would only affect 5% of Delawareans if it were to pass. Certain lawmakers believe, that 5% have most likely not been hurt financially by the pandemic.
Democrats say with three-fifths majority of the house under their control, considering the President Pro Tempore, Senator David Sokola, is a co-sponsor of the bill. They feel this bill has a greater chance of passing than in recent years.
Rep. Kowalko adds, Delawareans so stay in touch with state legislators, provide input, and ask questions, to better understand state legislation, and create an overall better relationship.