He toured the state and had coffee klatch after coffee klatch, but (true to form) in the end, there was only one coffee klatch that mattered. Carney’s “shared sacrifice” budget largely parrots the budget fixes left to him by Jack Markell.
Carney:
Carney proposed a hike in personal income tax for all earners. Those making over $60,000 annually would be taxed at a 6.8 percent rate, compared to the current 6.6 percent. Those annually making less than that would see a hike between 0.2 and 0.4 percent.
Markell:
Top personal income tax rate increases from 6.6 percent to 6.8 percent, at $60,000. Raises $9.9 million.
Carney:
The cigarette tax would also rise by a full dollar, from $1.60 to $2.60, lifting Delaware’s price-per-pack slightly higher than Maryland’s, while remaining lower than Pennsylvania and New Jersey. His proposal would also double the tax on moist snuff and e-cigarettes.
Markell:
Cigarette tax increases from $1.60 a pack to $2.60 a pack. Raises $18.6 million.
Carney:
…raise the corporate franchise tax... Fortune 500 companies would now have to pay $250,000 annually–$70,000 more than their current rate, which has been untouched for eight years. Mid-size companies would see a $20,000 rise in their corporate franchise tax, taking it from $180,000 to $200,000.
Markell:
Corporate Franchise Tax: raised to match inflation, with a new top rate — $250,000 for companies with $750 million or more in revenues or assets.
No new tax bracket. No new thinking.
