Finally, some action on adding new income tax brackets on the wealthy
Currently, Delaware’s income tax system is a hybrid flat tax that favors the wealthy. That is not a surprise over the history of this state, which catered to the weathy Du Ponts locally and the wealthy corporations nationally.
It is a surprise for a state that has been run by Democrats for the last twenty-five years. Currently, residents making $60,000 are paying the exact same income tax rate as a billionaire: 6.6%
For years, State Representative John Kowalko, who I describe as Delaware’s Bernie Sanders and the anchor of the Progressive side of the Overton Window, has been introducing one or more bills creating two new tax brackets above $125k over the past few sessions. Because if we are to have a progressive income tax structure in this state, it would be nice to have the obscenely wealthy pay a higher income tax rate than someone making $60,000, which is an income that is smack dab in the middle of the middle class income range. Here are the tax brackets:
Tax Bracket Tax Rate
$2,000.00+ 2.2%
$5,000.00+ 3.9%
$10,000.00+ 4.8%
$20,000.00+ 5.2%
$25,000.00+ 5.55%
$60,000.00+ 6.6%
House Bill 15 would tax personal income of between $125,000 and $250,001 at 7.1 percent and above $250,000 at 7.85 percent. So the table now looks like this:
Tax Bracket Tax Rate
$2,000.00+ 2.2%
$5,000.00+ 3.9%
$10,000.00+ 4.8%
$20,000.00+ 5.2%
$25,000.00+ 5.55%
$60,000.00+ 6.6%
$125,000+ 7.1%
$250,000.00+ 7.85%
Read more: https://bluedelaware.com/2019/04/16/finally-some-action-on-adding-new-income-tax-brackets-on-the-wealthy/