Delaware House panel approves proposed income tax increase

A House committee has voted overwhelmingly to send a bill raising income taxes on Delawareans to the full House for a vote.

The legislation considered by the committee on Wednesday raises income tax rates across the board, eliminates itemized deductions while increasing the standard deduction, and creates a new tax bracket for income above $150,000.

Representatives of the real estate and nonprofit communities urged lawmakers not to eliminate deductions for mortgage interest and charitable contributions.

Committee members also voted to release a bill increasing taxes on alcoholic beverages, despite overwhelming opposition from dozens of industry representatives, from distributors and wholesalers to craft brewers. Opponents said the measure will cost jobs and lead to lower sales.

The committee also was scheduled to consider proposed new taxes on tobacco products and opioids.