The legislative session is winding down, and the business community may be able to claim a victory — but not just yet.
As the Delaware State Chamber noted in its weekly update, the chances of Gov. Matt Meyer's plan to add tax brackets for higher-income individuals are fading.
House leadership has not been receptive to the idea, perhaps recognizing that additional revenue may be necessary next year as federal resources dwindle and the possibility of a recession increases.
Meyer's measure is mainly symbolic, as it adjusts brackets and generates a minimal amount of revenue (less than $17 million) for a proposed budget totaling $6.6 billion.
Its worst feature is the message sent to businesses and individuals in other states. The same could be said for many pieces of legislation that have emerged this year.
Had the bracket legislation been completely revenue-neutral and provided a more meaningful tax cut to working families, it would have gained broader support.
The Chamber and the business community are worried about a hastily crafted measure that would increase fines for emissions and discharges to the air and waterways.
While fines may need to be adjusted for inflation, the proposed amounts are excessive for companies that have invested in pollution control equipment. Overall, industrial pollution has fallen sharply, especially with the recent retirement of the Indian River power plant's coal-fired unit.
Downwind pollution from other states, traffic along the I-95 corridor, and
Other wild cards are natural disasters that could trigger toxic releases or the effect of the bill on everyone's home and business insurance.
While the legislation did not receive enough votes in committee, it remains very much alive as work wraps up, and legislation thought to be dead emerges at the end of the session.
The pay equity bill was also mentioned in the Chamber report. While on the books in 20 states, the Chamber and the business community would like to see a bill that does not come with provisions unique to Delaware.
The primary issue here is paperwork, especially for employers that operate nationwide or in multiple states.
Not mentioned in the chamber report was a bill that would nullify the Sussex County Council's decision to deny routine zoning for a substation that would move electricity from the US Wind offshore project to the grid.
There is support for the project in the business community, given the economic impact that would spill into Delaware. However, others don't want to see the loss of local control and would rather have the issue play out in court, where opponents' arguments appear to be weak.
Some coastal communities, Republican state senators, and the Glasgow-based Caesar Rodney Institute, a conservative advocacy group, oppose the project.
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