Press Release

DCFPI Statement on DC’s Council Proposed Package of Tax Changes

The DC Fiscal Policy Institute supports the DC Council’s proposal to implement recommendations of the D.C. Tax Revision Commission.  The package addresses a troubling imbalance in DC’s tax system, one that leaves middle-income residents paying more in taxes as a share of income than the city’s highest-income residents.  The proposal could cut taxes by $1,000 or more for working DC families, by expanding the Earned Income Tax Credit, reducing the tax rate on moderate-incomes, and raising the personal exemption and standard deduction to match federal levels.    

“These changes would help thousands of low- and moderate-income families keep more of what they earn and keep up with DC’s rising cost of living,” said Jenny Reed, Policy Director at DCFPI.  “These are important steps to making DC’s tax system more fair.”