How will the District Council Tax Increase Affect You?
Residents earning over $350,000 will now face an 8.95 percent tax.
The D.C. Council voted last week to create a new 8.95 percent top tax bracket for city residents making more than $350,000. The measure passed seven votes to six. Georgetown's Jack Evans (D-Ward 2) joined David Catania (I-At-Large), Marion Barry (D-Ward 8), Muriel Bowser (D-Ward 4), Vincent Orange (D-At-Large) and D.C. Council Chairman Kwame Brown (D) to vote "no," according to the Huffington Post DC. The tax hike goes into effect Oct. 1 when the new fiscal year begins. Between 2005 and 2009, the average family income in 2010 dollars in Georgetown, Burleith and Hillandale was $288,541, according to Neighborhood Info D.C. The median household income for D.C. is $60,903 and 17,178 households have an income greater than $200,000. Does the tax…
EDC
7:28 pm on Thursday, September 29, 2011
DC already has one of the highest individual tax burdens in the country. What the article does not mention is that the existing top rate of income tax (8.5%) kicks in at only $40,000 of taxable income. Add DC's relatively high sales tax rate, and you have a Council that is doing whatever it can to make DC one of the most economically punitive places in the US for middle income families to live. more ›