Fri January 25, 2013
DE Gov. Wants to Mke Temporary Tax Hikes Permanent
Governor Jack Markell wants to make the 2009 tax increases permanent…to shore up a $3.7 billion proposed budget that again does not include pay raises for state employees.
The tax increase for corporations and individuals are set to expire in July…and would help fill in the expected $56 million of expected budgetary red ink.
Still the Wilmington News Journal reports that the Delaware Democrat’s spending plan does reduce by a third the earlier personal income tax increase and cuts the gross receipts tax increase especially for manufacturers.
But Markell is proposed to keep the estate tax and the corporation franchise tax increase.
The tax proposals would generate $27.9 million for the fiscal year beginning in July and another $156 million the year after.
His budget represents a 3.5 percent increase over current spending.
Joint Finance committee co-chair state Representative Melanie George Smith called the governor’s plan balanced but expects a debate over taxes.