Viewpoint: Time to end surprise tax increases

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Rainey
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It was a sign of the times when the  Delaware General Assembly slipped into the dysfunctional mode we see in Washington, D.C.

Early Saturday morning, the process of coming up with a budget ground to a  halt. 

But unlike their counterparts in New Jersey and Maine, legislators did approve a  temporary bill that added another 72 hours to come up with a deal to reduce a $350 million to $400 million budget shortfall.

The impasse was a long time coming. Democrats have been tacking left and Republicans have moved to the right. Swing legislators are hard to find.

The logjam was broken on Sunday night.

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It turned out that legislators played tag and the real estate industry turned out to be “it” with an increase in the transfer tax.

 The residential real estate industry, which normally has a lot of friends in Dover, was blindsided and angered by the move that would make the state’s transfer tax among the highest in the country.

When combined with some modest spending cuts and increased tobacco and alcoholic beverage taxes,  the transfer tax kept an income tax hike at bay.

But unless I am missing something,  Delaware is likely to face a similar situation next year.

Expect the numerous options to raise taxes that were outlined in the past legislative session to emerge.

But do us all a favor. The next time around, allow some time for honest debate.

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Delaware Business Now is a four-year-old, five-day-a-week newsletter and website operated by Bird Street Media LLC. Publisher and Chief Content Officer is Doug Rainey, a 30-year veteran of business journalism in the state of Delaware.  Business Now focuses on breaking business news in Delaware and immediate adjacent areas with apropriate background and perspective. Also offered exclusively in our FREE newsletter is commentary on state and regional issues. Have a complaint, question or even a compliment? Send an email to drainey@delawarebusinessnow.com. For advertising information, click on the About tab at the top of the home page Our business hours are 8 a.m. to 5 p.m., Monday through Friday. Call us at 302.753.0691.
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