When we fight, we win.
Organizers, tax policy experts, grassroots organizations, and DC residents came together through the Just Recovery DC campaign to advocate for a tax increase on the wealthy to raise revenue to support residents struggling in the pandemic’s fallout. In 2021, DC Council passed the Income Tax Fairness Amendment Act, which went into effect January 2022, raised DC personal income taxes on residents with annual taxable incomes above $250,000.
The revenue from the tax increase paid for transformative investments in our communities:
Higher wages for thousands of the District’s early childhood educators who face high poverty rates and are paid substantially less than public school teachers.
Affordable housing for about 2,500 families and individuals experiencing homelessness.
The expansion of DC’s Earned Income Tax Credit (EITC) for workers with children earning low- and moderate-incomes to help them make ends meet.
Black and brown residents, and particularly women, will benefit the most from these major investments. A majority of early educators are Black and brown women, more than eight in ten residents who are homeless in DC are Black, and seven in ten of eligible EITC recipients in DC are Black. Wealthy white residents, on the other hand, will pay the majority of the tax increase given that they make up approximately two-thirds of taxpayers at the top of the income distribution. Together, the budget and tax plan will help those struggling to get by thrive, advance racial equity, and provide a boost to our economy.
Campaign Timeline
COVID-19 shutdown causes projected revenues to plummet by $2 billion.
Just Recovery DC forms to ensure DC has adequate revenue to meet increased need during the pandemic.
DC Council threatens to cut social services in fiscal year 2021 budget.
DC Council votes down Councilmember Charles Allen’s measure to increase taxes on DC’s wealthiest residents.
Just Recovery DC hosts Tax Justice teach-in, training more than 50 supporters on tax equity.
Just Recovery DC organizes the People’s Hearing on Revenue featuring testimonies from directly impacted residents, with more than 70 attendees.
Councilmembers Allen, Lewis-George, and Nadeau co-introduce amendment to increase taxes on DC’s wealthiest residents. Just Recovery DC drives 175 calls and 1,463 emails to lawmakers urging them to support the amendment. Amendment passes 8-5.
DC Council unanimously approves the FY 2022 budget, including amendment raising taxes. Just Recovery DC wins $170 million in new annual local revenue to fund housing for 2,500 households, equitable pay for early childhood educators, and an expansion of the Earned Income Tax Credit.