The DC Budget Squeeze: Tax Cuts and Key Spending Demands Left No Room for Other Progress
May 3rd, 2017
The District is enjoying tremendous prosperity, yet there isn’t enough money in the proposed DC budget to support schools adequately or to make meaningful progress on ending chronic homelessness. In fact, funding for most parts of the budget will be smaller next year than this year.
How can that be?
One factor is beyond DC policymakers’ control: A lot of money will be sucked up next year by rising school enrollment, Metro’s woes, and a few other needs. But the other factor is something Mayor Bowser and the Council fully control: tax cuts. The proposed budget allows $100 million in tax cuts to go forward—triggered by a policy set three years ago—which left no room for things that matter a lot to DC residents and our economy.
With the budget now in the hands of the DC Council, they can choose to hold off on tax cuts so that badly needed investments can be made. In particular, the Council should reconsider plans to eliminate taxes on estates worth $5.5 million and to cut taxes on business benefiting from DC’s prosperity. Both the estate tax and business income tax have already been cut in recent years, by the way.
Read the rest of this blog by Ed Lazere here.