The D.C. Council voted Tuesday to raise taxes on residents reporting more than $350,000 a year in income, closing a potential budget gap.
The D.C. Council voted 7 to 6 on Tuesday to raise income tax rates for District residents earning more then $350,000.
With current tax rates, residents earning more than $40,000 are taxed at 8.5 percent. The new tax bracket on residents with taxable income above $350,000, approximately 6,000 people, will move up to 8.95 percent.
While the tax hike seems relatively modest, estimates indicate that it will bring in approximate $106 million over four years. The tax raise will take effect at the start of the new fiscal year starting in October, and will expire after four years.
Revenue from the tax hike also allows the council to replace the retroactive tax on out-of-state bonds, which had become increasingly unpopular.
The vote capped a contentious day during which Vincent Orange introduced a measure that would have given council members a $45,000 raise. He later withdrew the measure.