Council Hikes Income Tax on High Earners
(Washington Examiner) — The D.C. Council narrowly approved an income tax increase on high-earning residents even as the city’s top financial adviser says the District will end the year with an $89 million budget surplus. In a 7-6 vote Tuesday, officials approved an 8.95 percent income tax on residents who earn more than $350,000 annually, up from 8.5 percent. The new rate, one of the highest in the nation, affects roughly 6,000 residents in the city and will expire in four years unless officials move to extend it. The tax was instituted in place of applying a new tax on purchases of out-of-state municipal bonds to current bondholders.
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