Politic365

 
 


District

9:00pm September 29, 2011

D.C.’s Wealthy To Get Taxed

dc wealthiest to pay new tax

District of Columbia residents earning more than $350,000 annually will have to dig a little deeper in their pockets around tax time.

The D.C. Council approved the tax hike on the wealthy by a vote of 7-6 to generate more money for the city. The good news is that the increase will be removed by 2015.

Supporters of the tax increase feel it is a long overdue step toward financial stability.

“This is about good tax policy by creating a new top bracket,” said Council member Phil Mendelson, according to the Washington Post. Mendelson is a Democrat and a sponsor of the tax increase.

“People who earn $350,000, $400,000, $1 million, should not be paying the same rate as someone earning $40,000,” he added, echoing a similar sentiment by President Barack Obama about federal tax rates.

Mayor Vincent Gray is expected to sign the measure. This bill is the second attempt during his time in office to get a tax increase on the rich. Earlier this year, Gray proposed a hike for those making $200,000 or more annually. That measure failed to gain traction.

The debate over the city’s tax hike mirrors the back-and-forth also taking place at the federal level. President Obama recently introduced a $450 billion jobs package to Congress this month, which he kicked off by a major speech to the American people. In an effort to pay for his ideas and attempt to cut the deficit, the president suggested raising tax rates on nation’s most well-heeled citizens.

The arguments are the same on both the local and federal level. Legislators representing middle and working class families argue that those making $50,000, for example, should be taxed at a lower rate than millionaires. On the reverse, critics on the council note that city spending has increased along with the projected revenue from the tax increase. They argue the increase is bad business for the Council.

“This is lazy government, this is ideologically driven, this is agenda driven,” said David Catania, an Independent member of the Council who argued against the increase.

Catania noted that Washington, D.C., is not in a financial hardship. The city is running an $89 million surplus in the 2011 fiscal year, something atypical for cash-strapped governments in recent years.

Overall, the D.C. tax increase is projected to bring $106 million into city coffers over the next four years, according to the Washington Post.



About the Author

Matt E. Stevens
Matt E. Stevens is the creator and chief blogger of Prune Juice Media. The site takes a sarcastic and informative look at the issues of the day – namely politics and current affairs. The goal of the site is to share information and make people laugh, or at least think. Matt is a contributing writer for Politic365.




 
 

 
Screen Shot 2014-10-02 at 10.46.05 PM

President Obama addresses Latino politicians, as protests against deportations continue

On Thursday evening in Washington, D.C., President Obama addressed the Congressional Hispanic Caucus Institute Gala, an annual gathering of Latino lawmakers and politicos (aka “Latino prom”). This address came after...
by Adriana Maestas
2

 
 
Obama-at-podium_cropped

Leading by Example: The White House’s Inclusive Vision for Solar Power

Last week, the Obama administration announced a series of new initiatives to enhance energy efficiency across the United States. Many revolved around commitments of funding and other resources to support the development and ado...
by Kristal High
1

 
 
vote1

#GA123: The Children of Freedom Summer Will Soon Be Leaders of Freedom Fall

The seeds planted 50 years ago in Mississippi during Freedom Summer are in full bloom. The children of 1964 — who are now leaders — are positioned to energize this generation of young voters of color and progressive...
by Kirk Clay
2

 

Advertisement
 
Obama lands at Fort Bliss during El Paso visit

Obama Preparing Executive Action on Immigration in September

With Congress taking summer recess without having passed immigration reform and President Obama indicating that he will have to act alone on the issue, people have been wondering when and what the President might do to bring re...
by Adriana Maestas
1

 
 
10382589_10152331524781551_150485824862705133_o

Report: Obama administration warned of Central American refugee crisis

Over the weekend, the Washington Post published an article detailing the extent that the Obama administration was warned of the surge of child refugees from Central America. The upshot is that the administration treated the inc...
by Adriana Maestas
0

 




12 Comments


  1. [...] Councilman Jack Evans had an idea to remove the tax increase on upper income District residents. That is feasible now that the city has extra operating funds. Overtaxing people does not make a [...]



Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>