Democrats release details on proposed income tax increases
DOVER, Del. (AP) — Democratic lawmakers have unveiled details of their proposal to raise income taxes on Delawareans and create a new tax bracket for top wage earners.
The proposal outlined Wednesday would raise existing rates across the board, eliminate itemized deductions and increased the standard deduction, as Democratic Gov. John Carney has called for.
But it would also create a new 6.95 percent bracket starting at $150,000. The current top rate is 6.6 percent on income above $60,000.
House Majority Leader Valerie Longhurst, a Bear Democrat, said the proposal would raise $68 million in additional revenue in the fiscal year starting July 1, and $211 million the following year.
The proposal comes as budget talks between Republicans and Democrats remain bogged down over differences between the need for spending reforms and tax increases.