Statement: All in for DC on Congressional Bill That Cuts $1 Billion from DC’s Budget
The US House of Representatives voted in favor of a bill that would cut $1 billion from DC’s current budget, which would result in drastic and immediate cuts to critical government functions and jobs, including schools, 911, and DC Metro. This extreme act of federal interference targets tax dollars from DC residents and businesses, not federal funds. Congress is also threatening to slash health coverage and food assistance for tens of millions of Americans—including hundreds of thousands of DC residents—to pay for tax cuts for the wealthy. Without funding for the programs that make the District run, residents will suffer.
“DC residents go to work, raise families as best we can, and pay taxes just like every other American—the fact that the federal government can just overturn our local budget is an attack on our fundamental freedoms. We should not be punished for living in Washington, DC,” said Nadia Salazar, All in for DC Campaign Organizer. “DC will likely experience a lot of economic hardship over the next few years, and the most vulnerable residents will be the most impacted. The All in for DC campaign hopes to work with Mayor Bowser and DC Council on ways to increase taxes on the wealthiest residents and most profitable corporations to raise the resources needed to protect DC’s most vital programs and services.”
The All in for DC campaign has made the following proposals for raising revenue:
Raise the tax rate on capital gains: Capital gains—profit from selling assets like stocks—overwhelmingly flow to the top 1 percent.
Make business taxes fair: Restructure DC’s business taxes by enacting a Business Activity Tax so that corporations operating in the District and benefitting from our economy and services, but currently not paying taxes to DC, contribute to our shared resources.
Implement a Land Value Tax to fund WMATA: A tax on areas within a mile of Metro stations to provide a dedicated revenue source for our transit system.
Help low and moderate income households make ends meet:
Expand the local child tax credit to help end child poverty in the District, especially among Black children and children without Social Security numbers, who are the vast majority of children living in poverty in DC.
Expand and automate the property tax credit (known as Schedule H) for low- and moderate-income homeowners and renters so they can better afford to stay in DC.
Mansion tax: Deepen the progressivity and rates on the highest value homes, to win greater revenue than Chairman Mendelson’s very limited version, passed last spring.
Millionaires tax: Raise tax rates on income above $500,000, and especially rates for incomes over $1 million.
DC lawmakers should use all available options to ensure cuts are minimized and DC residents are protected.