Two bills seeking to hike Delaware’s personal income tax on wealthier residents passed out of a House committee Wednesday.
New brackets would be added at the $125,000 and $250,000 levels. Right now, the highest tax bracket is on those making more than $60,000.
One option raises tax rates for those earners, while another would implement an across-the-board cut to all brackets, but limit the amount of federal deductions that can apply to their state returns.
The bill's sponsor, Rep. John Kowalko (D-Newark South) says he’s happy with the outcome.
“It shows a ringing acknowledgement of the crisis that we’re facing as far as having adequate revenue to continue to provide services that we are obligated to survive,” said Kowalko. “You can’t cast the gauntlet if you’re wearing the glove on your hand. You have to cast that gauntlet eventually and as a responsible legislator I feel that we’ve got to take action on this and hopefully the Senate will respond like-mindedly.”
Republicans have no interest in the bill, along with a slate of other proposed tax increases on the table.
It now heads to the full House for debate.
