This "apparent shortfall" is easily covered by the projected $425 million cash surplus for this fiscal year ended June 30, 2021, and the increased "rainy day" fund in the current budget under discussion. Some of the American Rescue Plan funds will undoubtedly substitute for funds already in the 2022 and 2023 budgets providing an additional buffer to make these recommended tax cuts work.
The just signed $1.9 trillion American Rescue Plan includes prohibitions against states taking this money from lowering any income taxes directly or indirectly. It likewise prohibits using these funds for replenishing pension accounts for public employees.
The recommended personal and corporate income tax reduction does NOT use the "American Rescue Plan" funds but instead, uses "Delaware's cash surplus" funds.
Both of these prohibitions will be clarified, no doubt through lawsuits.
In conclusion, knowing that with the combined "Gross Receipts Tax" and the 8.7% "Corporate Income Tax," Delaware has the highest direct business taxes in the country, approaching 12%; and nearly 66% of Delaware residents pay the top personal income tax rate of 6.6%.
As evident in the Caesar Rodney Institute's most recent analysis and the "Regan Era," tax cuts have been proven to launch sustained economic growth, by reducing personal and corporate income taxes would certainly spur up Delaware's economic growth.