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Rep. Kowalko’s Assault on Businesses and Taxpayers

May 2, 2009

(Press Release from Delaware State Represenative John Kowalko)


State Representative John Kowalko, State Representative in the 25th District, will unveil his alternative option proposal to the public at a meeting of State Workers United for a Better Delaware, 10:00 am, Tuesday, May 5 at the Delaware State Troopers Association, 6349 N Dupont Hwy, Cheswold, DE  (302) 736-9958)
(Route 13,  4 miles north of Dover Downs, 1 mile south of Garrisons Lake)

State Workers United is a coalition of unions representing state workers, teachers and school employees. 

State Representative Kowalko said it would be economically irresponsible to not reconsider the imposition of salary cuts on State Workers.  “These cuts do, in fact represent a tax of disproportionately large amounts on 6.8% of the Delaware work force, ensuring that the 91M raised would not be available to sustain the economies of our small and large businesses in Delaware.”
    Many Economists agree that these types of cuts can deny on a dollar for dollar basis, the infusion of consumer spending necessary to ensure small business success and rebuild consumer confidence especially in this type of recessive environment.
    The enormity of these salary cuts, on a per capita basis virtually assures that the overall economic health of Delaware will suffer.  “This is not a sustainable revenue source and we must look at a more diverse and balanced accumulation of revenue by considering a menu of options and alternatives that can be combined to displace the proposed salary cuts.”  Therefore today I am releasing to the public my proposal that lists=2 0the actual dollar advantage to an assortment of options that can be combined in various proportions to displace the $91M proposed in the salary cuts.
    “I am convinced that we can improve Delaware’s quality of life by making our revenue system fairer and more up-to-date.”
    I’ve submitted this proposal to the Joint Finance Committee, The General Assembly and the Governor’s Office and today it is being made available to the Public and the Media for consideration.
For more details and full presentation and remarks go to

Below is a sum mary of the potential additional revenue options in my proposal:

  • raises the Franchise Tax Cap for Corporations
    $107.5 million
  • increases the minimum fees on corporations from $75 to $100.;
    $5.94 million
  • increase annual coporate filing fee from $25. to $40., 
    $3.96 million
  • increase annual fee on LLC and LC from $250. to $300.
    $28.95 million
  • increase filing fees on foreign corporations from $100. to $250
    $1.575 million
  • establishes fees for statutory trusts from $0 to $200.
    $2.1 million
  • utilizes 25% of Rainy Day Fund
    $46.5 million
  • establishes fees on inherited wealth over $4,000,000  
    $40 million
  • increases gasoline tax by .05¢
    $25.7 million
  • 3 furlough days for non-public school em ployees
    $3 million
  • looks at the personal income tax codes to make them more progressive,
    $82.75 million

My alternative solution is equitable for all citizens of Delaware, sustainable past the current budget crisis and responsible by moving us out of the current crisis rather than making it worse.


DelawareRepublican is encouraging every sensible Delawarean to join in OPPOSING this business-unfriendly, and spend foolish plan.  It will hurt Delaware in the long run by discouraging business to start-up or remain in business in the State of Delaware.

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