On the issue of basic fairness, and also because we need to raise more revenue than our basically flat income tax rate allows, it is time for Delaware for add a few more tiers to its progressive tax structure. As it stands now, Delaware has two tax rates it taxes you at. If you make under $60,000, you are taxed at one percentage. If you make over $60,000, you are taxed at another percentage. The unfairness and ridiculousness of this system cannot be overstated. Someone making poverty level wages (i.e. under $18k) is taxed the same rate as someone making $55k. And someone making $14 million a year is taxed the same as someone making $90k.
Delaware has a $63 million budget shortfall, and we cannot make that shortfall up and deal with the cost of Medicaid simply with spending cuts. It is time that Delaware adds more tax rate tiers above and below the 60k dividing line.
Meanwhile, the JFC will be holding public hearings this Wednesday on the health and social services spending.