Markell budget plan includes $212M in new taxes

(AP) – Outgoing Gov. Jack Markell is proposing $212 million in tax increases to balance a proposed budget for the fiscal year starting July 1.

Markell also is proposing $56 million in agency and program cuts in his $4.1 billion spending plan, which surely will be revised by incoming Gov. John Carney.

Markell's proposal includes hiking corporate franchise taxes, which would net as estimated $115 million annually in additional revenue.

He also wants to increase the top individual income tax rate from 6.6 percent to 6.8 percent and eliminate itemized deductions.

Changes to the real estate transfer tax, shared by state and local governments, would generate an estimated $55 million in additional revenue for the state while seeing the local government share decrease.

Smokers would pay another dollar per pack in taxes.