WASHINGTON, DC – The DC Statehood Green Party is calling for an increase in the DC state income tax rate for top earners following passage of the GOP tax scam by Congress and its signature into law President Trump on December 24, 2017.
The latest corporate handout to Wall Street at the expense of hard-working Americans, this GOP tax scam will only serve to further indebt future generations and further encourage attempts to cut Medicare, Medicaid, food stamps, and essential social service programs.
Under the GOP’s $1.5 trillion tax bill, 80% of American households across all income levels are expected to get an average tax cut of about $2,100, according to an analysis by the Institute on Taxation and Economic Policy (another 5% would get a tax increase), but there are stark differences in how much taxpayers take in, depending on their income.
Nationwide, households earning less than $25,000 will get an average tax cut of $60, and middle-class households would get $900. Meanwhile, the top 1% of households would receive a cut of $51,000. That disparity is only expected to increase over time. In Washington, DC, the top 4% of taxpayers (with incomes above $347K) will get the biggest tax cut in 2019 – averaging a 3.3% federal tax cut – while those making over $135K will get 78% of the total.
Currently, DC millionaires pay a lower share of their income on DC taxes (including income, property, sales and other taxes) than all but the poorest residents. Families earning $50K a year pay the highest share of income for DC taxes (10.3%), a pattern that will continue if 2014 tax legislation is not revised.
“We are calling on Mayor Bowser and the City Council to increase the DC income tax rate on the District’s wealthiest, especially the top 1% who average over $3 million per year in income, by the same rate the GOP tax bill cuts federal income tax rates. This would leave District residents paying the same overall amount (federal plus state), but with the added bonus of generating nearly $300 million a year in badly needed revenue,” said DC Statehood Green Party Chair Darryl Moch.
In 2015 DC millionaires had a taxable income of $5.39 billion, and revenue from taxpayers earning at least $200k totaled $12.8 billion. Thus even a mere 2.0% hike in their DC income tax payment would generate $256 million per year.
DC Statehood Greens are also calling for tax increases on developers building luxury and high-end condominiums, and for a withdrawal of all subsidies from developers who are not complying with local hiring, affordable housing regulations, and labor laws.
The DC Statehood Green Party maintains that the most effective way to alleviate the federal deficit is not by cutting social services or relying on “trickle-down economics,” but by reducing the bloated and wasteful military budget. In 2016, “defense” spending accounted for over 50% of federal discretionary funding, and, last July, over 60% of House Democrats voted to approve a nearly $700 billion military spending bill.