DC 2008 Budget 9% Higher, Kills Proposed 5% Cap on Property Taxes
This week the DC Council once again asserted its desire to grow beyond the ability of its taxpayers to finance it. The Council passed a $5.6 billion 2008 budget, which is 9% higher than the 2007 budget. As a point of reference, the consumer price index increased 2.6% in the 12 month period ended April, 2007.
Even worse, the budget nixed Council hero Jack Evans' proposal to cap property tax increases at 5% per year. Evans' proposal was ambushed by the DC Fiscal Policy Institute, which sought to kill the cap by cravenly making it a racial issue, claiming that most of the cap's benefits would flow to predominantly white Wards 2 and 3. Any property tax deduction or cap would benefit most those whose properties have the highest assessments, but every tax payer would benefit proportionally. The DCFPI also left out of their press attack that diverse Ward 4 would be a big beneficiary, something that Evans deftly pointed out today on the Kojo Nnamdi show on WAMU.
The Washington Post is the house organ for the DCFPI. It had only one article on Evans' proposal and and a Schwartz proposal to reduce DC estate taxes. That article quoted generously from the lobby group before even explaining the details of either proposal to its readers. The article is so one-sided that it is worth reading the first three paragraphs:
Even worse, the budget nixed Council hero Jack Evans' proposal to cap property tax increases at 5% per year. Evans' proposal was ambushed by the DC Fiscal Policy Institute, which sought to kill the cap by cravenly making it a racial issue, claiming that most of the cap's benefits would flow to predominantly white Wards 2 and 3. Any property tax deduction or cap would benefit most those whose properties have the highest assessments, but every tax payer would benefit proportionally. The DCFPI also left out of their press attack that diverse Ward 4 would be a big beneficiary, something that Evans deftly pointed out today on the Kojo Nnamdi show on WAMU.
The Washington Post is the house organ for the DCFPI. It had only one article on Evans' proposal and and a Schwartz proposal to reduce DC estate taxes. That article quoted generously from the lobby group before even explaining the details of either proposal to its readers. The article is so one-sided that it is worth reading the first three paragraphs:
The D.C. Council is considering substantial breaks on inheritance and real estate taxes, and the plans could cost the city almost $100 million in revenue over the next four years, officials said yesterday.The Wa Post also wrote an editorial titled "Giveaway" that attacked the tax reductions and, of course, cited the conclusions of the DCFPI. How reducing the rate of tax increases from three times the inflation rate to about 1.5 times is a "giveaway," I have no idea. If the DCFPI really want DC to be affordable to seniors and low-income residents then they should endorse lower property taxes and enable those constituents to be able to keep their homes.
Some council members said the proposed cuts are a way to encourage homeowners to stay in the District. But a report scheduled for release today by a think tank concludes that the legislation would most benefit the city's wealthiest residents and do little for people who don't own their homes.
"This is a city that is divided by income already," said Ed Lazere, who wrote the report. Lazere is executive director of the D.C. Fiscal Policy Institute, which analyzes District tax and budget issues.
posted by Leonardo at 4:54 PM
3 Comments:
The DC Fiscal Policy Institute is a pressure group with a narrow agenda. How they have gotten such stature with the Wa Post is beyond me.
As you point out, their pro property tax stance will not help renters but will hurt them.
I think they just love all taxes of all sorts and make up the means to justify them.
Thank you Evans.
While the Council should have passed the Evans proposal I certainly wouldn't call Jack Evans a "council hero". Only in DC would a tax and spend liberal like Jack Evans be considered one of the good council members.
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