District of Columbia: More Movement Towards Progressive Deficit Reduction

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In recent months, New York has enacted -- and numerous other states, such as Connecticut, New Jersey, Minnesota, and Hawaii have debated -- an increase in the income taxes paid by wealthier residents as a means of responding to the current fiscal crisis. Recognizing a good idea when he sees it, DC Councilman Jim Graham has put forward a plan to raise the top tax rate in the District to 8.9 percent, but only for those taxpayers with incomes above $500,000.

An informative new report from the DC Fiscal Policy Institute (DCFPI) details the merits of the plan and concludes that, "[b]ecause it would raise revenues progressively, without adversely affecting low-income residents, the Equitable Income Tax Act is a reasonable approach to boosting revenue in this challenging budget year." DCFPI offers numerous other resources for those interested in following local tax and budget debates, in particular its FY10 Budget Toolkit.

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