The Vote Tracker Update — Progressive Priorities

This legislative session has been all about the budget and our legislators and Governors slowly waking up to the fact that they will have to raise taxes on the wealthy in order to balance the budget. Indeed, the budget that emerges from may be the most important piece of legislation in terms of progressive priority that the General Assembly passes this year, if it adds two or more income levels and rates to the progressive tax structure.

One topic is getting little attention as lawmakers attempt to close an $83 million budget gap: raising income tax rates. And, specifically, raising taxes on Delaware’s wealthiest earners, who have seen most of the state’s wage gains in recent years.

Delaware’s personal income tax is the largest source of state revenue, generating $1.2 billion this year – enough to fund almost 32 percent of total state government operations. Delaware’s top income tax rate of 6.6 percent is charged on incomes $60,000 and above.

Some lawmakers now say adding a tax bracket for wealthier Delawareans could help solve the state’s budget problems, while more fairly spreading the state’s income tax burden.

Consider these potential scenarios, and their impact on annual state tax collections:

1. Raise rate to 7.6 percent on incomes > $125,000: $71.7 million
2. Raise rate to 7.6 percent on incomes > $250,000: $46.7 million
3. Raise rate to 7.1 percent on incomes > $125,000: $35.7 million

*Source: Delaware Department of Finance

Time to lay down the gauntlet: If Delaware’s Democrats do not add more tax brackets and rates above our current highest rate of 6.6% on incomes over $60,000, they cannot be considered Democrats any further. Not just progressive Democrats. Actual Democrats. Seriously, you all might as well become Republicans right now. And that will be especially true if they go for any of Governor Markell’s Republican ideas of repealing the Estate Tax or lowering corporate or income tax rates.

Repeat after me Democrats in the General Assembly: You will add tax brackets and rates on the wealthy. You will do it.

Other progressive priorites have been, in no particular order, the following:

Death Penalty Repeal, SB 40 — Passed the Senate but failed to clear the House Judiciary Committee. Might be petitioned out for a full House vote, but that is unlikely.

Marijuana Decriminalization, HB 39 — Passed the House 24-14. Indeed, the partisan breakdown in this vote (no Republican voted for it) reveals something: the Delaware Republican Party in no way is becoming more libertarian. You would like that a young man like Jeff Spiegelman would vote for it, but nah.

No Excuse Absentee Voting, HB 105 — Released from Committee back on April 29, still waiting for a vote.

Same Day Voter Registration, SB 111 — Will be considered in the Senate Admin Services and Elections Committee next week, June 10.

Opt Out Bill, HB 50 — Passed the House 36-3. Was supposed to be considered in the Senate Education Committee this past weekend but was not. Mike Matthews says if it is not considered next week as promised, we all riot.

Minimum Wage Increase, SB 39 — Waiting in the Senator Labor and Industrial Relations Committee.

Death with Dignity, HB 150 — Considered in committee and tabled, though that is not really a defeat since sponsor Paul Baumbach waiting to jumpstart discussion this session and then really push for the legislation next year, much like Helene Keeley did with Marijuana Decriminalization last year.

Out of all these bills, it is likely the only one that will pass is Marijuana Decriminalization. Opt Out may also pass, but with I am less optimistic now with Senator Sokola’s shenanigans, coupled with the fact that the Governor will veto as promised, meaning we will have to somehow reconvene the General Assembly again and override it.

I get the sense that the voting measures are getting this odd resistance from the old guard, so maybe Hillary Clinton’s recent push on this topic will wake them the f up. Death Penalty Repeal is likely dead for this session as is the Minimum Wage Increase bill.

Remember, we are not tracking all the bills, just the bills of progressive or liberal interest, including those sponsored by Republicans, and including those that we, as progressives and liberals, want to see defeated (i.e. the Estate Tax Repeal bill). You can download the tracker in the form of a Excel spreadsheet by clicking on the menu button in the lower right corner of each box.