Gov. Matt Meyer says plans to add income tax brackets for higher income Delawareans are still in the works, even though they aren’t part of this year’s budget plan.
Meyer’s first budget proposal last year made waves by suggesting three new income tax brackets for those who make $125,000, $250,000 and $500,000. But the effort didn't get passed through the General Assembly.
Currently, the floor for Delaware’s highest bracket is $60,000, which is taxed at a rate of 6.6%
"I think it's wrong that a Delaware family making $6 million a year is paying taxes at the same rate as a Delaware family making $65,000 a year," he said. "I think that's wrong."
He said his administration is working with the state legislature to create a coalition to address new tax brackets.
After the bill to implement the idea stalled last year, House speaker Melissa Minor-Brown introduced legislation to increase taxes on tobacco products. It was assigned to committee but did not move forward.
Meyer's budget this year doesn't include new tax brackets but it does include suggestions from Minor-Brown's bill.
It suggesting bumping the tax on cigarettes up to $3.60 per pack, doubles the tax on e-cigarette liquid from five cents to 10 cents per milliliter, and increases tax for wholesale tobacco products by 10%.
"You call it regressive?" Meyer said. "I think it's progressive in terms of our community health and making sure there are appropriate disincentives financially for people to continue using tobacco that is really harmful, not just to personal health, but to community health."
Including vape products, the suggestion is expected to bring approximately $18.9 million in revenue for the state next year.
