My take: Matt Meyer’s tax plan

 Meyer had quietly  mentioned plans for tax brackets during his successful candidacy for governor, but never backed down from his belief the the wealthy should pay more.

 In some ways, the added tax brackets appear to be  largely symbolic and are designed to not  raise a ruckus. Even the top tax bracket stays below 7% Revenues from tax tweaking might amount to a figure  equivalent to proceeds from recreational marijuana sales, whenever  that happens.

The income tax code is complex, and the percentage of those impacted drops once deductions and exemptions are added to the mix.

 We do know that a  high percentage of the population pays the current rate of 6.6%, which kicks in at a modest  $60,000. Adjusting for inflation, $60,000 in 2000 is equivalent to $110,000 today. You might call that a backdoor tax hike.

 Delaware latched on to the personal  income tax, due, in part, to the  the Progressive movement at the turn of the century, a reaction to the excesses of  “gilded age.” The state softened the blow with the lack of a sales tax and low property tax levies.

 However, the Delaware  income tax rate rose over the years and contributed to the economy's near collapse about a half century ago.

   We do know that a  high percentage of the population pays the current rate of 6.6%, which kicks in at a modest  $60,000. Adjusting for inflation, $60,000 in 2000 is equivalent to $110,000 today. You might call that a backdoor tax hike.

 Republican Gov. Pete duPont led an effort to cut the income tax rate and gain revenues by lifting interest rate caps  on credit cards. That brought a host of banks to the state and diversified the state economy.

His successors lowered income tax rates to a figure in keeping with the average in nearby states, except Pennsylvania.

Income tax cuts ended as the state's economy slowed from the  boom times in the 1980s, and Democrats took control of both houses and statewide offices.

However, over the past few decades, no governor moved to raise the top rate despite periodic recessions and budget deficits.

 Efforts to add tax brackets,  led by now-retired state Rep. John Kowalko, went nowhere, with the governor and legislators worried that a higher top rate would lead more of the wealthy to move next door to Pennsylvania or perhaps  Florida. Efforts by Republicans to decrease the top tax rate also failed to gain traction.

 Meyer will introduce the budget and tax changes before a General Assembly with a larger contingent of progressives and a dwindling number of Republicans.

 The great middle of the General Assembly, which approved the controversial  Senate Bill 21 corporate overhaul,  will have mixed feelings.

 Even with the tax tweak, Meyer's budget comes with the possibility that future state budgets will tap out a $400 million reserve championed by his predecessor, John Carney as a cushion against lower revenues during tougher times.

 Another wild card comes if  the revenue projections from DEFAC begin to reflect an economic slowdown that becoming  a less-than-remote possibility.

The Joint Finance Committee of the House and Senate  now has the tough job of making tough decisions amid signs of stormy times ahead with the loss of federal funding for many programs..Meyer’s tax plan adds another wrinkle. - Doug Rainey, chief content officer.