Press Release: Tax Revision Commission Proposal Fails to Raise Critically Needed Revenue
FOR IMMEDIATE RELEASE
January 5, 2023
CONTACT: Nikki Metzgar, nmetzgar@dcfpi.org
Tax Revision Commission Proposal Fails to Raise Critically Needed Revenue
WASHINGTON, DC – Today, the Tax Revision Commission – a body of 10 members appointed by the mayor and DC Council – released its first draft of recommendations for improving DC’s tax code. The draft proposal contains both tax cuts and increases for an ultimately revenue neutral package.
“While the commission’s recommendations to create a DC child tax credit and expand the Schedule H circuit breaker would make the tax code more equitable and support District families, overall the proposal doesn’t go far enough,” said Niciah Mujahid, Executive Director of the Fair Budget Coalition, an organizational member of the All in for DC: A Tax System for Justice campaign. “Racial equity requires unrigging the system. The concentration of white wealth in DC stems from centuries of racist and extractive policies and practices that have systematically stripped Black people of wealth they produced while allowing white people to amass extreme wealth and grow it across generations. Taxes can advance racial equity by asking more of households with the highest incomes and helping families earning low and middle incomes keep more of what they earn.”
The current draft of the Tax Revision Commission’s recommendations may be amended again before an expected public comment period in January 2024, after which the commission will submit its final package of recommendations to the mayor and DC Council for consideration and possible implementation.
“We can’t fund vital government services and programs without needed tax revenue, but DC under-taxes the wealthy,” said Mat Hanson, Chief of Staff at DC Action, an organizational member of the All in for DC: A Tax System for Justice campaign. “DC Council can strengthen the commission’s proposal by taxing the extreme wealth in the District and using that revenue to address urgent spending needs, including its unfulfilled commitments to end chronic homelessness and ensure families have access to quality child care.”
Just 1,500 households in DC each have a net worth over $30 million and they hold nearly half of all wealth in the District. Meanwhile, more than one in five Black DC residents lived in poverty in 2022. By asking the wealthiest residents to pay their fair share in taxes, the District can tackle inequality and ensure everyone can share in DC’s prosperity.
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All in for DC: A Tax System for Justice is a campaign under Just Recovery DC aimed at raising revenue the District can invest in programs and services that advance racial equity. Just Recovery DC uses the power of progressive tax policy to address the racial inequity and injustice that Black people and other communities of color have endured for generations and continue to experience today.