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OPINION

Haycraft: Sales tax an investment in state’s future

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Jeffrey Haycraft is a resident of Camden.

There’s a certain pride that comes with seeing those “Welcome to Delaware: Home of Tax-Free Shopping” signs. As someone who has spent a lifetime in this state, I understand exactly why people want to protect that identity. It has been part of who we are for generations.

But pride alone does not pave roads, expand hospitals or keep up with the reality of a state that is growing faster than our revenue model can support.

Let’s be clear: Adding a sales tax would be a significant shift. No one is pretending otherwise. But pretending that our current system is sustainable — or that we can simply cut our way to long-term stability — is not grounded in reality.

The argument that out-of-state shoppers and the owners of second homes will continue to carry us is increasingly shaky. Yes, visitors come here for tax-free shopping. But they also come for our beaches, our restaurants and our quality of life, all of which require investment. If we continue to rely on invisible taxes and seasonal spending, we are tying our future to a model that fluctuates with tourism, not stability.

We also need to be honest about what has changed in Delaware over the last decade. We have welcomed an influx of retirees from neighboring states, who are drawn here for a lower cost of living, lower property taxes and no sales tax. That growth is not inherently a bad thing. But it does come with real consequences. Many of these new residents are no longer in the workforce, yet they still rely on the same roads, hospitals, emergency services and infrastructure as everyone else. At the same time, the farmland and open space that once defined large parts of Kent and Sussex counties are rapidly giving way to dense housing developments.

The result is a state that is more crowded, more strained and, in many ways, falling behind neighboring states that have more balanced and sustainable revenue systems. We are asking yesterday’s tax structure to support today’s population, and it is not keeping up.

The idea that we can solve our budget challenges solely by rooting out waste, fraud and abuse sounds good on paper, but it is not a real plan. Every state in the country is already pursuing those efficiencies. It is not a hidden, billion-dollar solution waiting to be uncovered in Delaware. Even aggressive reforms would not close the long-term gaps we are facing in infrastructure, education and health care.

Meanwhile, the demands on our state continue to grow. Roads are more crowded, emergency services are stretched, and access to doctors — something recent editorials have rightly highlighted — is becoming more difficult for everyday Delawareans. These are not abstract problems. They are daily realities.

A modest, carefully structured sales tax, paired with protections for essentials, would provide a more stable and diversified revenue stream. It would ensure that everyone who benefits from living in Delaware, including those who move here for its financial advantages, contributes in a meaningful way to maintaining and improving it.

We can still be proud of Delaware. But being proud does not mean refusing to adapt.

At some point, we have to decide whether we want to keep selling the image of Delaware or actually invest in its future.

Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.

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