A bill before the DC Council tomorrow would help wealthy investors and tech executives pay very low taxes on substantial income gains when they sell their investments in tech companies. The Technology Sector Enhancement Act would set a new three percent tax rate just for tech investors, a deep cut from DC’s top income tax rate of 8.95 percent ‘ which is lower than the income tax rates paid by all other working DC residents.
TELL THE DC COUNCIL: DC Should Follow the Buffett Rule, Not Break It.
Billionaire Warren Buffett’a Wilson Senior High School graduate’has famously pointed out that he pays a lower tax rate on his investments than his secretary pays on her salary, and he supports raising taxes on investment income to address this inequity. Yet DC’s legislation would go against the Buffett Rule, by taxing tech investors and owners at a lower rate than the income tax rate for all working DC residents. (DC’s basic tax rates are four percent, six percent and 8.95 percent, depending on the income level.)
The Gray administration acknowledges they are promoting this because “high-worth” tech employees in DC are expecting to cash out soon and make a lot, and some of them have told the Mayor they will move to Virginia to avoid paying DC taxes. Yet these wealthy company owners are likely to be benefiting already from District tax subsidies given to all high tech companies, such as the $32.5 million in tax breaks for LivingSocial. Why should DC reward wealthy tech executives who are threatening to leave DC by offering them incredibly low tax rates on their significant stock gains?
At a time when DC has no revenues to fund any critical programs on the budget “wish list,” it simply does not make sense to risk a large loss of DC tax revenues to wealthy tech investors.
CONTACT THE DC COUNCIL to say that you support the Buffett Rule and the Council should listen to the Sage of Alice Deal and Wilson High School!
Entire Council membersonly@dccouncil.us
Phil Mendelson, Chairman, 724-8064 or pmendelson@dccouncil.us
Jim Graham (Ward 1) 724-8181 or jgraham@dccouncil.us
Jack Evans (Ward 2) 724-8058 or Jacjevans@dccouncil.us
Mary Cheh (Ward 3) 724-8062 or mcheh@dccouncil.us
Muriel Bowser (Ward 4) 724-8052 or mbowser@dccouncil.us
Kenyan McDuffie (Ward 5) 724-8028 or kmcduffie@dccouncil.us
Tommy Wells (Ward 6) 724-8072 or twells@dccouncil.us
Yvette Alexander (Ward 7) 724-8068 or yalexander@dccouncil.us
Marion Barry (Ward 8 ) 724-8045 or mbarry@dccouncil.us
At-Large
Michael Brown 724-8105 or mbrown@dccouncil.us
David Catania 724-7772 or dcatania@dccouncil.us
Vincent Orange 724-8174 or vorange@dccouncil.us
