As the failed gubernatorial recall in Wisconsin and other recent referendums evidence, citizens are waking up to the fact that politicians have made pension commitments for public employees that can’t be sustained. Delawareans should be equally concerned about the overuse of supplemental pay b...
Read MoreThe state of Delaware gross receipt tax is levied against total business income, regardless of whether a firm makes a profit or not. Following the onset of the recent recession, one of the state’s answers to falling revenues was to twice raise the gross receipt tax. First, an increase of 25% i...
Read MoreIn August of 2009 Delaware raised its cigarette tax from $1.15 to $1.60 per pack of 20 smokes. The consequences were predictable. State revenue from the cigarette tax fell between 2009 and 2012. In part this was due to the higher price discouraging smoking. In addition, however, Delawares ...
Read MoreThe Delaware Public Employees’ Retirement System is what you have dreamed about but are unlikely to ever enjoy. DPERS is a “defined benefit plan” which means that participants’ retirement benefits are paid out “regardless of market events.” State government r...
Read MoreAgain and again and again politicians have to learn that raising taxes above a reasonable level results in less tax revenue by encouraging tax avoidance. The current tax rate of 35% on the repatriated income of the foreign operations of U.S. firms, the highest rate in the developed world, is a class...
Read MoreThe Delaware Economic and Financial Advisory Committee (DEFAC) met on September 19th and the news isn’t encouraging. Less than three months into the new fiscal year, the state is running an operating balance deficit of $355 million and an unencumbered cash balance of $32 million. In ...
Read MoreWilmington’s Riverfront Development Corporation (RDC) received $3.5 million through the state’s capital budget in July, bringing the taxpayers’ total investment in the riverfront since 1995 to over $280 million. Now, starting with a $2 million request, the RDC is proposing th...
Read MoreAny discussion of job creation in Delaware must start with the recognition of the existence of the two distinct societies in Delaware: persons with limited education (a high school degree or less) and persons with ample education (a college degree or more). The limited education folks are b...
Read MoreThe latest IRS data on personal income taxes collected from Delaware residents is for 2009. Examining the data is instructive. About 14% of the returns were from Delaware households whose adjusted gross income was $100,000 or more. These high income households accounted for 46% of the incom...
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