Staff Reports
The Chairman of the District of Columbia Council, Phil Mendelson, is proposing tax increases on businesses and homeowners to counteract Mayor Muriel Bowser’s budget cuts to early education funding. Mendelson’s plan includes higher property taxes on homes valued over $2.5 million and increased taxes for businesses funding the Paid Family Leave program. Additionally, he aims to reinstate the Early Childhood Educator Pay Equity Fund.
Mayor Bowser's budget includes a $70 million cut in early education funding as part of her strategy to reduce city spending by $500 million. She has voiced concerns that Mendelson’s proposal could impose $530 million in new taxes and fees on taxpayers, potentially leading to further tax hikes or substantial cuts to services and programs.
"DC Council chairman proposes more tax hikes to counteract Bowser’s cuts to early education' on SmartNews: https://t.co/691WyxF8T1
— TrishaMDj (@Trichiemd) May 29, 2024
Mendelson’s proposed tax plan is expected to generate approximately $100 million in revenue for the city. This would be in addition to Bowser’s suggested tax increases, which include raising the sales tax from 6% to 6.5%, with a further increase to 7% over the coming years.
A report by the D.C. Policy Center highlighted that the district lost around $40 million in revenue due to fare evasion in 2019. However, with the implementation of the new crime bill, Secure D.C., the city is expected to reduce revenue losses from fare evasion.
Mayor Bowser has faced significant criticism, with a recent poll showing that 48% of district residents disapprove of her performance, a 10% increase in disapproval since 2022. Her tenure has seen a notable rise in crime and homelessness, with homicides increasing from 162 in 2015 to 274 in 2023, and a 26% rise in overall crime last year compared to 2022.
