Good afternoon,
News spread over the weekend over Gov. John Carney’s veto of two bills sponsored by his own party.
Under some arcane legislative rules and procedures that need to be changed, Carney was forced to take action on two bills passed in the past session. One would expand the earned income tax credit for lower-income residents and limiting the tax credit for senior citizens.
Based on reports from Delaware Public Media and other outlets, Carney was not happy that the earned income tax credit for poorer taxpayers, sponsored by Paul Baumbach, D-Newark, would go to more people. That would cut the current credit that goes to a smaller group of taxpayers.
When it came to the senior citizen tax break, the credit would be means tested, meaning that only poorer seniors would receive the benefit. Bill sponsor, Rep. Kim Williams, D-Wilmington, said the change would address the demographic challenge of keeping the tax break.
The earned income tax credit has long been supported by the left and right as a way to help families climb out of poverty. Outreach efforts continue on increasing awareness of the tax break.
Delaware has remained on the stingy side when it comes to the tax credit. In the Diamond State, the credit is non-refundable and only reduces the tax liability.
The senior citizen property tax credit will put a bigger dent in revenues as an army of baby boomers move into retirement, but Carney indicated that the measure was flawed, reports indicated. It is also worth noting that seniors vote and restricting the benefit could have consequences in the 2020 election.
Some might see the vetoes as payback by Carney for fellow Democrats not going along with the badly needed “budget smoothing” legislation that would set aside added revenue in good times to balance budgets during downturns.
A few left-wing Dems saw more sinister motives and hinted that smoothing would be an excuse to cut services to needy Delawareans, even during good times.
Carney further irritated the liberal wing of the party by signing an executive order that put some of the budget smoothing provisions in place.
Carney is attempting to govern from slightly left of center. That ’s hard to do as some Dems move to deep left and Republicans tilt further to the right. – Doug Rainey, publisher.
