DOVER — A proposal to consolidate Delaware’s personal income tax brackets was stymied by members of the House of Representatives’ Revenue & Finance Committee on Tuesday.
Sponsored by House Minority Leader Mike Ramone, R-Newark, House Bill 233 would raise the minimum personal income tax threshold from $2,000 to $2,500, while breaking the six tax brackets into three groups with reduced rates.
For example, the state’s two highest existing brackets require a 5.55% rate for those whose incomes are over $25,000 but do not exceed $60,000 and 6.6% for those making over $60,000.
Under HB 233, however, the structure would be altered to combine these two groups, albeit with the raise to a $2,500 floor for the lowest bracket. Plus, the highest bracket would apply to those making over $25,000 and would implement a 5% personal income tax rate.
During the bill’s committee hearing Tuesday, Rep. Ramone said he took a “fair and equitable” approach with the legislation, noting that it would provide a degree of tax relief to every Delawarean, as families continue to grapple with inflation.