A Better Deal for Delaware

The nation’s median household income increased for the second straight year in 2006, but it still has not rebounded to the level at the start of the decade. Incomes for 1999 have been adjusted for inflation.

Delaware Income 1996 per household. 57,334
Delaware Income 2006 per household 52,833 A drop of 7.8%

The key to making Delaware the First State in this Great Nation is to increase economic growth and restrict runaway government spending.

We need to pursue a Taxpayer’s Bill of Rights which keeps budget increases to a maximum of inflation plus population growth and have a top down independent review of all state agencies for efficiency, purpose and value to the taxpayer.

To increase economic growth we must tackle the issue of health care, offer large tax incentives for start up and small businesses and look for a replacement for the Chrysler Plant in Newark, De.

In many ways, the economy is doing well. Unemployment, home ownership and inflation etc. say things are doing well but they could be doing much better if not for the onerous and complicated tax burden on small businesses and families.

Moms and Dads should pay attention to their families not the IRS

Small business people should serve their customers not the IRS.

read more:

from the NCPA

August 14, 2007
THE TWO-INCOME TAX TRAP
Despite recent plummets in bankruptcy numbers, scholars on the left argue that the drop is temporary and that rising bankruptcies will result from new stresses on American households, says Todd J. Zywicki, professor of law at George Mason University.
The left blames new expenses that strain the family budget, such as rising health-care costs and higher mortgage payments for increasingly expensive homes, leaving less discretionary income available to save and to meet other household expenses, and forcing mothers into the workforce. What they fail to mention, however is the role of taxes:
Overall, the typical family in the 2000s pays substantially more in taxes than the combined expenses of their mortgage, automobile and health insurance than in earlier periods.
And the change in the tax obligation between the two periods is substantially greater than the change in mortgage, automobile expenses and health-insurance costs combined.
This suggests that the most important change in the balance sheets of middle-class households over the past three decades is a dramatically higher tax burden caused by the progressive nature of the American tax system, says Zywicki:
In turn it follows that the most effective way of alleviating the household budget crunch would be to adopt lower and flatter tax rates that would reduce the government’s take.
Another possibility would eliminate the “secondary earner bias” in the tax system, which causes all of the wife’s income to effectively be taxed at a much higher marginal tax rate than the husband’s.
Lower and flatter marginal tax rates generally are not advocated by those who dominate the American legal academy today, says Zywicki. But for those who want to consider serious strategies for preventing bankruptcies, less money in Uncle Sam’s pockets may mean more money in ours.
Source: Todd J. Zywicki, “The Two-Income Tax Trap,” Wall Street Journal, August 14, 2007.
For text:
http://online.wsj.com/article/SB118705537958296783.html

For more on Taxes:

http://www.ncpa.org/sub/dpd/index.php?Article_Category=20

Copyright © 2007 National Center for Policy Analysis. All rights reserved