Here is a summary of, and link to, each bill in the Governor’s tax package. As required by law, all revenue enhancers must start in the House, and a 3/5 majority is needed for passage.
Please note that all are sponsored by the Democratic leadership as the Rethugs seem determined to simply play political Russian Roulette with the State’s finances:
HB 260(Gilligan): Removes the State Personal Income Tax exemption from lottery winnings.
HB 261(Gilligan): Adds direct-to-home satellite services to the public utility tax base and increases tax rates on public utilities other than cable television.
HB 262(Gilligan): Increases certain documents and records fees.
HB 263(Schwartzkopf): Increases fees levied by the Fire Marshal’s Office.
HB 264(Longhurst): The Big Kahuna. The State Personal Income Tax bill. This will increase the personal income tax rates from 5.55% to 5.95% on taxable income ranging from $50,000 to $60,000; from 5.95% to 6.95% on taxable income ranging from $60,000 to $150,000; and from 5.95% to 7.45% on taxable income in excess of $150,000. ‘Bulo highlighted the last one b/c it appears that at least one element of John Kowalko’s plan made the cut. Not as much graduation in the Code as the Beast Who Slumbers would like to see, but better than it was before.
HB 265(Longhurst): Reinstates the Delaware Estate Tax and at least partially turns the tables on one of the worst initiatives that ever came out of the Gingrich/Bush Rethuglican Party. Remember how they rebranded the Estate Tax into the “Death Tax” and essentially used Orwellian manipulation of language to give another break to the least deserving among us, i. e. the Inheritance Millionaires? This begins to reverse that trend, and it’s about time.
HB 266(Longhurst): Certain to be one of the most controversial bills in the package, and one that might be a struggle to pass, this increases business and gross receipts tax rates.
HB 267(Gilligan): Increases administrative fees charged by the Secretary of State.
HB 268(Gilligan): Establishes a voluntary compliance mechanism to incentivize tax delinquents to pay what they owe ASAP.
Finally, to point out just how full of BS the Rethugs are on this, one only needs to read this report from today’s News-Journal:
“Georgetown Republican Joe Booth, who sits on the JFC, said the tax bills introduced Monday “should have been out earlier.”
“If we’re in the era of open government, these bills could have been out earlier and we could have had time to discuss them and not ram them through,” Booth said.
How disingenuous is this statement? Allow ‘bulo to count the ways:
1. Booth is on the JFC. All the legislators were kept apprised of the negotiations on the package every step of the way by their caucus members who serve on JFC. If Dick Cathcart and his Mindless Minions were not, they have Joe Booth to blame for not keeping them up-to-speed.
2. There is more time to discuss these proposals, despite the crisis atmosphere in which they’ve been created, than there has been time in most years, including the past 24, when the House was controlled by the Rethugs. In fact, the package has been referred to the House Revenue & Finance Committee for deliberation, not being rushed to the floor under suspension of rules, as routinely took place when the Rethugs were in charge.
3. Perhaps the bills would/could have been released earlier if Dick Cathcart hadn’t held his breath and threatened to go home. The Governor was seeking bipartisan support for the tough decisions required of true leaders. However, Jack Markell is learning the same lesson as Barack Obama: Rethugs have no interest in responsible governance, their only interest is to try to wring political advantage from every situation.
Remember, folks, the State has to pass a balanced budget. Working to get that done would be the responsible thing to do. That would not be the Republican Way.