The DC Line: – David Schwartzman: By Offsetting Federal Tax Cuts Locally, We Can Improve the Quality of Life for All DC Residents
ITEP Work in ActionMisha Hill of the Institute on Taxation and Economic Policy (ITEP) has estimated that the top 20 percent income bracket of DC residents will receive almost $700 million in federal tax cuts this year, with most ($541 million) going to the top 5 percent (with incomes above $319,000 per year). The same study finds that $265 million could be recovered as additional revenue by raising the marginal rate of the DC income tax for millionaires to 11.95 percent (or 2 percent above what they are paying now), with lower rates for those earning less than millionaires but making more than $200,000 annually.