December 28, 2017

The Washington Journal: Greater Washington’s Achilles’ heel on tax cuts: Its pricey real estate

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Greater Washington’s high median income should have set up the region to reap more than its share of $1.5 trillion in tax cuts passed by Congress and signed by President Donald Trump this month — but the region’s high real estate values will blunt its impact for many regional taxpayers.

The D.C. metro area reported a high median household income of more than $95,000 in 2016 (compared to a national median of $57,000). And while taxpayers in the middle of the pack will receive a tax cut of a few hundred dollars, those in the top 1 percent will see an average cut of $55,000, according to an analysis the Institute on Taxation and Economic Policy. Read more