Markell’s Budget proposes an increase in two annual incorporation taxes for alternative entities, such as LLCs, and corporations that would pay the minimum tax level

Boo!

The proposal would increase the annual tax on Limited Liability Companies, Limited Partnerships and General Partnerships from $250 to $300, and increase the minimum annual Corporation Franchise Tax from $75 to $175.

We would argue that this proposal does exactly the opposite of what the Markell Budget claims to support: Jobs and Economic Opportunity; Invests in Delaware’s Future. And that is for one simple reason- the hundreds of employees in the State Delaware who rely on the incorporation industry will suffer as a result.

You can only come back to the well so many times before it dries up folks.

It is a mistake to take the Golden Goose for granted (Delaware get’s about 1/3 of it’s budget revenue from Corporations).
It is a mistake to think that this won’t drive business away from Delaware.
It is a mistake to think it won’t impact the jobs of those who rely on this industry to make a living (and incidentally, pay a bevy of other taxes here).

These are troubled times my friends, and the storm clouds gather over our great State. We can only hope that the legislature will not support this part of the budget proposal, and the storm will pass.

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