Kowalko Proposal Follow Up

This letter has just been sent to Governor Markell’s Communications Director, Joe Rogalsky.

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Joe –

As you know, Governor Markell asked for input on his suggestions to balance the states budget and we think that John Kowalko made some pretty good revenue creating suggestions which included:

• raise the Franchise Tax Cap for Corporations — $107.5 million

• increase the minimum fees on corporations from $75 to $100. — $5.94 million

• increase annual corporate filing fee from $25. to $40 –$3.96 million

• increase annual fee on LLC and LC from $250. to $300 — $28.95 million

• increase filing fees on foreign corporations from $100 to $250 –$1.575 million

We know that the Governor’s position is that these changes would cause businesses to flee Delaware, but given the fact that most Delawareans are seeing their total tax burden rise faster than their wages, and the proposed increases would be minor given the huge corporations that they are directed at, we do not find that argument to be convincing.

However, assuming that the Governor’s concerns are legitimate, Liberalgeek made the suggestion that the state adopt at least some of the Kowalko recommendations while imposing a one to two year limit these changes. This compromise would obviate the need for payroll cuts this year while giving up to two years for Governor Markell to find measures to redesign government to be meaner and leaner.

We are eager to get the Governor’s response to these suggestions.

Respectfully,

Jason330, LiberalGeek, Donviti, Cassandra_M, Pandora, Nemski, Delaware Dem, Xstryker, El Somnambulo,Unstable Isotope