Delaware’s stupid, no-good, unfair tax code
I largely agree with Gov. John Carney’s strategy to spread Delaware’s budget pain as far and as thin as he can, even if it ends up pissing off a number of constituents. I have a few minor quibbles about his plan, but where the governor and I really differ is on income taxes.
Tags: John Carney
Great stuff Rob. Everyone click through to read the whole thing. Here is a snip:
Great cartoon!!!!!!! Sums it all up. A picture is worth a thousand words.
Speaking of Taxes this information is for all the people that live in the city of Wilmington who’s property taxes are going up to 7.5 percent. Charles Potter said on his show yesterday that his wife the City Treasure saved the city 4 million dollar in her first 100 days. My question is if that is true then why didn’t she want to do a budget hearing to explain how she did that. Don’t you think the taxes payers have a right to know how the finances of the city are doing n the pensioners have a right to know what’s going on with the pension money. I think she is hiding something or lying about save the city money I think that happened under the last treasurer. We should not have a property tax increase if it was true. You make the call
That’s total nonsense. Rumor is that she blew lots of taxpayer money redoing her offices the first few months.
Chris,
She also hired her sons girlfriend who is making $6500.00 and a contractor who his her girlfriend and both of the I was told do nothing all day. She is such a crook. I heard she is going to run for Mayor next time. God help us
Speaking of such, why can’t we just ask the corporate crooks who incorporate in DE to put up a bit more
I agree that the tax code in Delaware should be changed. But it’s not true that everyone above $60k pays the same tax rate. Everyone pays the same rate on income they earn above $60k, not on their entire income. So, a person earning $70k per year pays 6.6% on $10k of her income, and pays a lower rate on the rest of her income. A person earning $100k pays 6.6% on $40k of income, with a lower rate on the rest of her income. As a result, the person earning $100k is paying a higher overall tax rate than the person earning $70k. Still, I agree that there needs to be a higher tax bracket because the difference in the overall tax rates is not enough.
@MJR: I would really appreciate it if people would quit explaining to us how marginal tax rates work like we’re all fucking 19 years old and never had to file a return before.
This is not news. We are not idiots. Don’t treat us like we are.
It’s especially infuriating when it comes from somebody who confuses tax RATE with the the amount of taxes paid. 6.6% is the tax rate. Just because $40,000 × 6.6% > $5,000 × 6.6% doesn’t mean the first taxpayer is paying a higher rate.
Thanks for the reply, Aurochs. But in my mind, if you say the 2 people pay the same tax rate, it implies that they pay the same overall percentage of their income. And I think that’s how most people would interpret the cartoon.
It would be less misleading if the quote said “I can’t believe we’re in the same tax bracket” or “I can’t believe we pay the same marginal tax rate.”
Also, chill dude. We’re on the same team.
The cartoon is not misleading at all, at least not to anybody who knows anything about Carney’s tax proposal or the Delaware income tax system. This is a political cartoon; it should not be held to the exacting linguistic standards of a philosophical treatise or a legal opinion. And I say that as somebody who, in general, despises political cartoons.
It really pisses me off when someone comes in, assumes everybody’s ignorant, and proceeds to explain the basics of something that every adult already has a basic understanding of. This is the second or third time I’ve seen a comment explaining how a marginal-rate income tax system works, and my patience with that shit is wearing thin.
Off to PA. No worries though… Will continue to shop in TAX FREE DE…
PA rate is 3.07%. Small bonus – Put 13.7k into 529 plan state tax free. Good luck…
With deductions paid approx. 5% DE income tax…
Goodbye welfare state…
@Aurochs:
This is not news. We are not idiots. Don’t treat us like we are.
It actually IS news to a surprisingly large group of people. That group probably doesn’t visit this site, but it really should.
Actually Tom Kline,
The PA income tax is not 3.07 if you decide to use your brain for more than sitting on.
Read the last sentence from the PA code and try to have your feeble. little brain wrap around the actuality that the final rate is much higher than advertised without any deductions or personal exemptions. Oh! and don’t forget to add in the additional median municipal tax rates that grow that 3.07% to 4.07% without deductions or exemptions allowed. Then calculate the 3x percentage of property tax (more than De) that PA owners so gladly pay and your everyday sales tax and even your dim-bulb of a brain can see the number/percentage growing. Hope I haven’t warned you off of your proposed move and don’t let the door hit you in the ass. Bye-bye
Rep. John Kowalko
Personal Income Tax
Pennsylvania personal income tax is levied at the rate of 3.07 percent against taxable income of resident and nonresident individuals, estates, trusts, partnerships, S corporations, business trusts and limited liability companies not federally taxed as corporations.
Pennsylvania taxes eight classes of income: (1) compensation; (2) interest; (3) dividends; (4) net profits from the operation of a business, profession or farm; (5) net gains or income from the dispositions of property; (6) net gains or income from rents, royalties, patents and copyrights; (7) income derived through estates or trusts; and (8) gambling and lottery winnings, including cash prizes from the Pennsylvania Lottery. Noncash prizes from the PA Lottery are not taxed. A loss in one class of income may not offset against income in another class, nor may gains or losses be carried backward or forward from year to year.
The commonwealth employs three primary methods for collecting personal income taxes:
estimated and final payments from individuals;
employer withholding; and
estimated withholding from nonresident partners or shareholders by partnerships and S corporations.
“The Pennsylvania personal income tax does not provide for a standard deduction or personal exemption”.
Relatively speaking, Delaware’s tax code is too “flat”. We need more brackets to take advantage of middle class saving incentives and to spread the responsibility of supporting the government we want to those who can most afford to pay. We are not medieval peasants who expect or want our homes burned by the sheriff as he takes our “taxes” from us. Nor do we want programs like public schools to close from lack of funds.
True dat. The simple minded governor has been hoodwinked into thinking that there is a “budget crisis.” The fact is there is plenty of money in Delaware, but it is being hoarded by a couple of wealthy families and some multinational corporations.
Jason,
The simple-minded governor has not been hoodwinked into thinking there is a “budget crisis.” He inherited that crisis from his two predecessors and is no smarter than they were in figuring how to get out of it. If either Minner or Markell had raised the rates on the high earners, we wouldn’t be where we are today.
My accountant from Gunnip doesn’t agree with you. Now…Should I believe liberal bull shitter or someone that earns an honest living working for a private sector accounting firm?
It’s time for you to retire and start collecting that unearned taxpayer paid pension.
John kowalko says:
April 28, 2017 at 11:04 pm
Actually Tom Kline,
The PA income tax is not 3.07 if you decide to use your brain for more than sitting on.
Read the last sentence from the PA code and try to have your feeble. little brain wrap around the actuality that the final rate is much higher than advertised without any deductions or personal exemptions. Oh! and don’t forget to add in the additional median municipal tax rates that grow that 3.07% to 4.07% without deductions or exemptions allowed. Then calculate the 3x percentage of property tax (more than De) that PA owners so gladly pay and your everyday sales tax and even your dim-bulb of a brain can see the number/percentage growing. Hope I haven’t warned you off of your proposed move and don’t let the door hit you in the ass. Bye-bye
Rep. John Kowalko
Personal Income Tax
Pennsylvania personal income tax is levied at the rate of 3.07 percent against taxable income of resident and nonresident individuals, estates, trusts, partnerships, S corporations, business trusts and limited liability companies not federally taxed as corporations.
Pennsylvania taxes eight classes of income: (1) compensation; (2) interest; (3) dividends; (4) net profits from the operation of a business, profession or farm; (5) net gains or income from the dispositions of property; (6) net gains or income from rents, royalties, patents and copyrights; (7) income derived through estates or trusts; and (8) gambling and lottery winnings, including cash prizes from the Pennsylvania Lottery. Noncash prizes from the PA Lottery are not taxed. A loss in one class of income may not offset against income in another class, nor may gains or losses be carried backward or forward from year to year.
The commonwealth employs three primary methods for collecting personal income taxes:
estimated and final payments from individuals;
employer withholding; and
estimated withholding from nonresident partners or shareholders by partnerships and S corporations.
“The Pennsylvania personal income tax does not provide for a standard deduction or personal exemption”.
Gee Tom Kline you really are a complete a**hole aren’t you? And proud of it too. Damn that’s some fined tuned stupidity you’re mucking about in.
Representative John Kowalko
Kline,
This:
“My accountant from Gunnip doesn’t agree with you.”
is not an argument. It’s not even a sufficiently detailed statement. Try actually REBUTTING what Kowalko said (if indeed he is mistaken). He gave detail and referred to PA code. You gave nothing.
If somebody calls you an idiot because you’re posting this kind of shit, they’re right.