A bill from last session that would increase the income tax is on the table again in 2021. Despite the projected $500M surplus this year, this bill would establish two new tax brackets of $125,000 at 7.1% $250,000 at 7.85% and above $500,000 at 8.6%.
Currently, all income above $60,000 is taxed at a rate of 6.6%. This tax increase will serve as yet another stream of revenue for an ever-increasing budget. Due to the way many businesses are set up in Delaware, this bill would hurt both Delaware residents and small businesses. Neither can shoulder this burden while trying to recover from COVID.
ABD opposes this bill based on its economic impact on Delawareans.
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