Politicians suggesting a sales tax will have trouble being reelected. A sales tax is regressive, not progressive, because middle- and lower-income people would pay more in proportion to their incomes than upper-income people would.
A more progressive state income tax makes “dollars and sense” because the wealthy have more discretionary income and can afford to pay a little more. Delaware’s top income rate (on $60,000 and above) has been 6.65% since 2014. Before that, it was 6.75%.
Make it 7% on $500,000 and above. Few people would move out of state because of a 0.35% tax rate increase. Meanwhile, Delaware would get enough revenue to balance the budget and avoid imposing a sales tax on residents.
Rich Wieland
Smyrna
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