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Proposed Tax Cuts For D.C. Residents And Businesses May Be Delayed

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The D.C. Council plan to cut taxes has hit a snag after the city's chief financial officer says he can't sign off on the proposed budget.

CFO Jeffrey Dewitt says he can't certify the proposed budget and its sweeping package of tax cuts until the Council fixes several "deficiencies." Basically, the tax breaks would cut into future revenue. That revenue needs to be replaced somehow — or else the city will bust its debt cap in several years.

The Council plan "relies on using money from the budget that's set aside for long-term development and infrastructure projects." DeWitt says that's not a wise move because those funds need to be there help local governments in the case of a shortfall or an emergency.

The proposed tax cuts — which include cuts to most income tax rates and a lowering of business taxes — were proposed last year by the D.C. Tax Revision Commission, but were a last-minute addition to this year's budget. The Council is expected to take a second and final vote on the budget next month.


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