The Delaware Legislature and Governor Meyer’s proposal to increase personal income taxes for those earning more than $60,000 represents a fundamental misunderstanding of Delaware’s business community. While framed as making the wealthy “pay their fair share,” the tax hike contained within House Substitute 1 for House Bill 13 would burden small business owners at precisely the wrong time.

As a small business owner, I understand that business income on paper doesn’t equate to cash in an owner’s pocket. Most small businesses operate as corporations, partnerships, LLCs, or sole proprietorships where owners report business income on their personal tax returns. Unlike corporations that pay a separate business tax rate, these pass-through entities face the full brunt of personal tax increases.

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