Since 2014, the District of Columbia has been implementing a package of tax reductions that make D.C.’s tax system more fair and competitive. These reductions came about as recommendations from the D.C. Tax Revision Commission.
The final set of tax reductions -- $100 million in cuts to income, business and estate taxes – will go into effect in January 2018 because DC revenue is increasing faster than expected.
For the past couple of months, there has been a movement to pressure the Mayor and Council to reverse proposed tax cuts in DC law made by the former Tax Revision Commission and use the tax revenue to support purposes outside of the mandated tax relief for residents and local businesses. For years, the DC Chamber has said that the corporate tax levied on businesses in DC is too high and is in support of the tax trigger to lower the business franchise tax to 8.25% beginning in January 2018, which will align our tax rate to neighboring Maryland counties.
In the proposed FY18 Budget, Mayor Bowser did not cave to the pressure of advocates, but now some elected City Councilmembers are considering reversing the tax cuts and to go back on a promise they made to the business community to reduce their tax burden. This is the last set of tax triggers to be implemented, the others have been phased in since 2014 and should not be reversed or delayed.
The DC Chamber of Commerce and Federal City Council are mobilizing now to advocate on your behalf. But you can help too! We are collecting names of businesses and individuals that want to sign onto a joint letter to the DC Council to say given the increasing mandates on employers now is the time to fulfill commitments to the business community and reduce the corporate franchise tax.
The corporate tax has been approved to decrease from 9.0% to 8.25%. Any change now, will mean an increase in costs for YOU the DC job creators
Email email@example.com TODAY, to unite with other businesses and sign the joint letter to DC Council. Want to do more? To join our lobbying efforts on this issue and become a voice for small and local businesses email firstname.lastname@example.org for next steps