Some Delaware lawmakers want to create three more personal income tax brackets for higher wage-earners, an action that would affect Delawareans whose taxable personal income exceeds $125,000.
Representative John Kowalko, D- Newark South, said the bill intends to ensure a more fair and equitable progressive tax structure that’s sustainable and not overly burdensome to any category.
New personal income tax rates would be set at 7.1% for taxable income between $125,000 and $250,000, 7.85% for income between $250,000 and $500,000, and 8.6% for taxable income in excess of $500,000.
Current state law sets Delaware’s top tax bracket at 6.6-percent for anyone who makes more than $60,000.
“This bill is intended to ensure a more fair and equitable progressive tax structure that is sustainable and not overly burdensome to any category of earners,” Kowalko said. “It has been carefully calculated to apply a minimal amount of tax increases while ensuring a sustainable revenue source in future economic downturns.”
House Bill 64, which has several co-sponsors, has been assigned to the House Revenue and Finance Committee.