Senate passes corporate income tax cut
State lawmakers passed their first major piece of legislation this year, lowering corporate income taxes in an attempt to cling to big businesses that may flee Delaware.
It’ll cost the state nearly $50 million over the next three years to phase in, but supporters say it’s worth it to potentially save an even further exodus of big businesses.
Senate Pro Tem Patricia Blevins (D-Elsmere) says it’s not just an attempt to save Chemours or DuPont jobs here.
“This is benefitting corporations all over the state and this is a great tool for bringing industry and bringing large corporations, large employers into the State of Delaware because this will modernize how we collect our corporate income tax," Blevins said.
But the way the legislation has been ushered through the General Assembly has some lawmakers bristling.
Sen. Bryan Townsend (D-Newark) sat on a state task force that drafted recommendations to revamp Delaware's volatile revenue structure last year -- including this piece.
But that plan was a wash revenue-wise. Townsend says it's bad policy to pick at the recommendations piecemeal.
“Without an established plan for how we will pay for this, I cannot support this legislation. The jury is out on whether this will stimulate our economy, whether it will keep a major company here,” he said.
Current calculations use a company's workforce and the amount of property they own in tallying their corporate income tax bill. Now, it'll solely be based off sales when fully implemented.
Gov. Jack Markell (D) spearheaded the bipartisan effort. It now just needs his signature to become law.