D.C. Council To Vote On Capital Gains Tax Breaks | WAMU 88.5 - American University Radio

WAMU 88.5 : News

Filed Under:

D.C. Council To Vote On Capital Gains Tax Breaks

Play associated audio
D.C.-based startup LivingSocial is considering relocating its headquarters to another city.
Rebecca Cooper
D.C.-based startup LivingSocial is considering relocating its headquarters to another city.

LivingSocial, the local company that offers daily e-deals to D.C. residents, is a booming business, making it one of the most profitable tech companies to come out of Washington. Keeping the successful company local is costing the city millions, however.

D.C. Council votes on a bill Tuesday offering breaks and assistance to local start-ups. This follows a $32.5 million tax deal offered to LivingSocial as an incentive to resist the urge to relocate to another city with a more lively technology community.

The LivingSocial deal is an excellent start to creating a good relationship between the District and the tech community, says David Zipper, director of business development for the deputy mayor's office. 

"They have to pay hundreds of millions more over the next 10 years if they were living here in the region than if they moved out," says Zipper. "It was too great of a risk."

But the D.C. Fiscal Policy Institute argues offering tax incentive is not the right approach to help the city's economy.

"It would be better if we say to LivingSocial you will get your $32.5 million dollars, if you actually expand 2,000 employees, as you say you will, in the District," says the institute's Ed Lazere.

Lazere says tax incentive is a blunt instrument for retaining tech companies that would otherwise be here in the District anyway. Zipper and Lazere appeared on The Kojo Nnamdi Show yesterday.

Tuesday's vote will decide if investors in other local tech companies will get similar tax relief on their earnings.

NPR

Church Of Scientology Calls New HBO Documentary 'Bigoted'

The filmmaker says Going Clear, harshly critical of the Church of Scientology, is about the dangers of "blind faith." The church has hit back with an aggressive public relations effort of its own.
NPR

Think Nobody Wants To Buy Ugly Fruits And Veggies? Think Again

Remember that old movie trope, in which the mousy girl takes off her glasses to reveal she was a beauty all along? A similar scenario is playing out among food waste fighters in the world of produce.
NPR

Amazingly, Congress Actually Got Something Done

The leaders and members must, in a word, compromise. And on this occasion, Speaker John Boehner and Minority Leader Nancy Pelosi did just that, with skill and savvy.
NPR

Can Republicans Get Ahead In The 2016 Digital Race?

When Sen. Ted Cruz threw his hat into the ring, it happened first on Twitter. Political news is breaking more and more on social media, and both sides face different challenges in reaching out.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.