How much will YOU save in taxes under the new Council tax reforms?
On June 24, the Council passed the Budget Support Act, which included a substantial package of progressive tax reforms that will benefit most District residents as they are phased in over the next few years. How much can your family expect to save each year, once the tax cuts are fully implemented?
On June 24, the Council passed the Budget Support Act, which included a substantial package of progressive tax reforms that will benefit most District residents as they are phased in over the next few years. How much can your family expect to save each year, once the tax cuts are fully implemented? The chart below will show you.
*New average tax amounts are based upon full implementation of the tax changes. Some tax relief will take immediate effect on January 1, 2015, including a new individual income tax middle bracket, an increased standard deduction, and an expanded earned income tax credit. Beginning January 1, 2016, additional tax relief will be triggered based on revenue growth realized after each fiscal year’s budget is approved. Full implementation of all tax reforms is expected in the next 3 to 5 years.