by James DeChene
The General Assembly was back in session this week, returning from the Joint Finance Committee. This week in Dover, we saw two bills related to taxes tabled in committee. The first proposed a reduction to the realty transfer tax by 1% and the second would have allowed for itemized deductions in Delaware. Both are on hold for now.
Also a bill on the National Popular Vote passed in the Senate. The bill is now headed to the House, and if passed there, it would enter Delaware into an interstate compact that would change how Delaware would award its Electoral College delegates.
A new federal court ruling could require companies over 100 to report pay by gender starting as soon as May 31, 2019. For more info on the issue and the ruling, click here.
by James DeChene
This year’s “Rich States, Poor States” was released this week, and Delaware checks in at 28th for economic performance, and 36th for economic outlook. Performance is calculated by considering state GDP, non-ag employment numbers and domestic migration. No surprise that we come in high (19th) in migration as we are a retirement destination state due to low property taxes and great beaches. For economic outlook, there are 15 areas considered, some in which we score well—no sales tax, low property tax; and some not so well—marginal tax rates on both individual and corporate payers, and average workers compensation costs. These numbers are right around where we were last year: 37th in 2017 and 44th in 2016, but 27th in 2014.
In the broader picture, an interesting take away was how net migration will impact congressional seats in the 2020 census. According to Election Data Services, the following states are poised to gain seats:
· Texas will gain three, from 36 to 39;
· Florida will gain two, from 27 to 29;
· Arizona will gain one, from nine to 10;
· Colorado will gain one, from seven to eight;
· Montana will gain one, from at-large to two;
· North Carolina will gain one, from 13 to 14; and
· Oregon will gain one, from five to six.
These states are poised to lose seats:
· New York will lose two, from 27 to 25;
· Alabama will lose one, from seven to six;
· California will lose one or remain even, from 53 to 52 or no change;
· Michigan will lose one, from 14 to 13;
· Minnesota will lose one or remain even, from eight to seven or no change;
· Ohio will lose one, from 16 to 15;
· Pennsylvania will lose one, from 18 to 17;
· Rhode Island will lose one, from two to one; and
· West Virginia will lose one, from three to two.
The “Rich States, Poor States” report lays out these numbers as well, and ties in states' overall tax policy approaches to help explain the migration. If the trend continues, high tax states will continue to lose congressional seats. It will be interesting to see how that changes the makeup on Congress, and their approach to tax policy.
Chairman of U.S. Senate Committee on Small Business and Entrepreneurship Looks to Delaware Chamber Tax Committee for Feedback on Legislation
By James DeChene
Louisiana Senator David Vitter, Chairman of the U.S. Senate Committee on Small Business and Entrepreneurship will be introducing this week legislation aimed at assisting the Small Business Community. Contained in the legislation are a variety of tax reform measures, and as a precursor to introducing the bill, Senator Vitter reached out to the Delaware State Chamber of Commerce, and its Tax Committee, for feedback. While the Committee agreed with the bulk of the legislation, there were a few technical corrections and other suggestions regarding tax filing dates, extensions and other nuanced submissions to help make the legislation stronger.
This type of exercise is not new to Tax Committee Chairman Jordon Rosen, or to other members of the Committee. They regularly are asked for feedback from Rep. Carney and other state and municipal leaders for their thoughts on tax reform proposals. For more information, or if you have an interest in serving on the Tax Committee, contact James DeChene at email@example.com
James DeChene is the Chamber's Senior Vice President of Government Affairs.