Open Thread – NJ Editorial chides lawmakers on stupid antitax stance
The Delaware Democratic Party’s “all tax increases are evil” stance is stupid on its face. John Carney is an idiot to begin his term by removing a discussion of common sense tax reform from the mix of possibilities, instead focusing 100% of his energies on cutting services.
We need to put something together to help push Rep. John Kowalko’s common sense tax recommendations, it is nice to see the NJ waking up to that fact:
As Matthew Albright reported, over the past few years, proposals to raise the gas tax and/or create a new tax bracket for our state’s wealthiest residents have gained no traction.
It’s time to revisit those ideas.
Consider gas taxes in our neighboring states. Pennsylvania sits at 50.4 cents per gallon. Last year, New Jersey boosted its rate to 37.5 cents. Maryland charges 32.6 cents. Delaware could increase its 23-cent rate by a dime and still be more than competitive with the rest of the region.
Our stance is not that tax increases are a must.
But they must not be off the table.
This goes to the heart of the question as to what it means to be a Democrat in Delaware. We’ve been inflicting pain by a thousand little cuts since 2009. Taking away employee benefits, health care to the indigent, you name it, while bestowing taxpayer $$’s upon wealthy corporations. Corporations, to be specific, that have helped to despoil Delaware’s environment, along with the environments of several other states.
Yet, every January, right out of the gate, we hear how we have to cut more and we NEVER hear about raising revenue, especially from those who have benefited the most from the largesse of the Governor and the General Assembly.
So, John Carney and all you alleged Democrats, show us why we should continue to support such Third Way politics. As of now, there really is no reason to. Unless you’re wealthy and don’t give a bleep about anyone else.
I agree, Delaware Democrats are not Dems at all, next to Carper Carney may well be the worst of the bunch. Their all corporatists that serve the rich, not the people of Delaware.
We need to apply some pressure. As Keith Ellison says, The people on the front lines, in the classrooms, emptying the bed pans, laying the pipes needs to know there is at least one political party on thier side.
Nobody has yet even talked much about how our operating revenues are likely to be further eroded by federal cuts to programs and services. Federal dollars fund a large proportion of state employees who provide services to the poor, transportation and environmental protection. In the next few years we are also going to need to compensate for the loss of those revenues.
My position is that state income taxes, corporate taxes, property taxes and fees must increase, particularly for those on the more affluent end of the scale. My state income taxes seem relatively small, considering what I pay in federal taxes.
I think small increases in taxes and fees will go a long way to creating the Delaware we all want to see – one in which all kids receive a quality education, one in which we can drink the water and breathe the air, and one in which we care for our most vulnerable.
I’m not just for raising taxes willy nilly then divving up the pile of cash. It is up to us to develop the agenda and demonstrate in a meaningful way, how those increases would be used to make our vision a reality. I think that has been pretty lacking in Delaware recently.
This–I’m not just for raising taxes willy nilly then divving up the pile of cash.–would be my concern. As El Som pointed out recently in another thread, and as many of us have pointed out over the years, even with a known budget crunch on the horizon, DE gave away at least $60 million last year in corporate welfare. DE has millions in uncollected environmental damages due from corporates around the State. DE legislators regularly raid funds like the Highway Trust Fund for other uses.
So I guess I’m wondering just why I should trust the DE government to do better with more money? This is not, by the way, an anti-tax argument, it’s an argument that not only is the lack of revenue a problem, it’s the malfeasance in spending priorities that is killing us.
From the News Journal editorial: “Then, of course, there are lawmakers who worry about what supporting a tax hike will do to their chances for reelection.” Those lawmakers should hang their heads in shame and consider resigning.
One of the bills I introduced last year (and in prior years) to raise the maximum corporate franchise tax cap should be the first order of business. Currently standing at $180,000 per year and used by nearly 2000 of the very richest companies/businesses incorporated in Delaware it saves these wealthy corporations millions of dollars and the expense of having to calculate or pay a department to calculate once you’ve been obligated for the maximum amount. Since 2009 I’ve sponsored such legislation that if increased by $30,000 per year would provide nearly $60 million (for each $30k cap increase) in additional revenue garnered from only the wealthiest companies. These companies (that enjoy using the cap) have allowed that this would not be an undue or unaffordable burden on them. In 2009 the 1700 – 2000 corporations availing themselves of this cap had a minimum stock asset value of over $660 million. I intend to file this legislation again this session with a reasonable cap raise that would max out the corporate franchise tax obligation at $240K per year and that would yield approximately $120 million in revenue that would blunt the $60 million (and counting) loss of revenue due to the “Delaware Competes Act” and the “Delaware Innovation Act” passed in the opening days of last session in a hastily contrived effort to offer more corporate welfare. I believe Rep. Kim Williams and I were the only two votes against these farcical attempts to grow Delaware’s economy and I hope the other 60 legislators are now prepared to recover some of their overly-exuberant generosity toward the wealthiest corporations on the planet.
Representative John Kowalko
Steve Newton said: …it’s the malfeasance in spending priorities that is killing us…
That’s pretty much one of the closest things to truth on this thread. Not just malfeasance, but short-sightedness, last-minute-ness, and porky-ness as well.
How about starting with requiring more time for the budget bill to be reviewed by the public? How about elimination of b.s. bond bill pet-projects that get added at 3:47 am on July 1?
Maybe term limits would help many of our dear legislators make difficult decisions?
“…Not just malfeasance, but short-sightedness, last-minute-ness, and porky-ness as well.”
That may be true. But calls to fix any of that are mostly disingenuous. Ultimately all austerity falls on the people who can least afford to have their services cut. For example, listen closely to John Carney. He never proposes any cuts to the egregious corporate welfare we pay out in the interest of “competitiveness.” It is always teachers and other state works who he bills as the leeches.
And the Chamber always couches this annual exercise in the same way:
“Everybody’s belt-tightening. Time for state employees to do the same.”
Ignoring, of course, the fact that state employees have been forced to downsize for over eight years while the Chamber’s multiple Daddy Warbucks stuff even more green into their oversized accounts.
It’s a phony meme, repeated year after year.
Wish we I had a legislator down here like John I could vote and work for
Notice today’s NJ with article by Tom Wagner implying that the “Competes” and “Innovation” acts saved some DuPont jobs. Like all of the chamber sponsored missives that are now appearing in the NJ subsequent to my article (which the NJ held for three weeks while they rounded up opposing views) this one draws completely erroneous conclusions from Wagner. The recent article shows a distinct lack of knowledge of actual numbers (scary from an “Auditor General”) or a deliberate attempt to propagandize the Governor’s and Chamber’s utter failure to adequately address Delaware’s economic plight. Let me repeat very clearly for those late to the discussion or not aware of details in the matter. When DuPont announced the 1700 layoffs of (six figure and up) research positions I confronted Thomas Cook, Secretary of Finance on three different public occasions. In our caucus meeting, in the committee meeting and on the House floor and I asked basically the same direct question. “Are the 1700 layoffs a fiat-accompli and will any of those jobs be restored. The answer was “NO”. I then asked if the “Competes or Innovation” acts would prevent any of the layoffs or restore any of those jobs and the answer was no. I asked if any other states that changed their corporate tax structure (Competes and/or Innovation) saw an uptick in job creation and the answer was basically not yet and I asked if this new policy would stimulate job growth the answer was “we can’t say yet but we hope it will”. These dialogues were in public/formal meetings. Let me add one more little tidbit to expose the propaganda in the Wagner article. After the DuPont-Dow merger was announced and the three spinoffs, one being “Pioneer” seeds, were proposed the end result was a complete cancellation of the Newark site construction project (for seed research facilities) and the movement of hundreds of research jobs to Iowa, while the forever DuPont loyalists in Delaware were left with keeping a headquarters in Wilmington that probably will never house more than 75 jobs (unless you count the privatized janitorial minimum wage jobs). So there you have it. The ugly reality of removing those rose-colored glasses on a sunshine filled day.
Representative John Kowalko
. Also note that the articles headline reading “D is for Delaware and DuPont” omits the most important “D” for the “Dioxin Pile” left by DuPont in the care of Chemours to eventually poison another “D” the “Delaware River” unless taxpayers pay to remove it.
Rep. John Kowalko