Potential Income Tax Hikes in Delaware Concern Some - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Potential Income Tax Hikes in Delaware Concern Some

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DOVER, Del. -- When lawmakers in Delaware's General Assembly return to session in a couple weeks they'll look at proposals to increase personal income tax rates in an effort to help balance a projected $386 million budget shortfall.

Gov. Carney has proposed rate increases in each tax bracket, with the highest earners paying 6.8 percent. Additionally, the plan calls upping Delaware's standard deduction but eliminating itemized deductions and the age threshold for personal credits and retirement income tax breaks would rise over time from 60 to 65.

The highest personal income tax bracket in Delaware includes anyone making more than $60,000.

Sonia Puri of Kent County said she was concerned about the idea of raising taxes because she felt her family already pays a lot of money in combined taxes to the federal and state governments.

"Even with the state taxes it's not a high percentage but it hurts. As it is, you pay a lot of tax," she said.

Tammy Ordway with Faw Casson, an accounting firm in Dover, said many people use the itemized deductions for the returns each year. She said the company is already advising some clients about potential tax changes in Delaware but noted many compromises between lawmakers occur on initial proposals and the final result may not be as steep.

"One concern in Delaware is we're at a 6.6 percent and nationally we're at a rate of 6 percent so we want to stay competitive economically," she said.

A separate proposal from Rep. John Kowalko (D-Newark South) has been introduced in the legislature that would create additional tax brackets for people who make $150,000 and $250,000. Both Carney's plan and Kowalko's proposal have already been met with opposition from some Republican lawmakers.

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