Chairman Comer Introduces Legislation to Stop D.C. Tax Increases

Bill ensures Congress reviews any D.C. legislation imposing or increasing taxes and fees

WASHINGTON-House Committee on Oversight and Government Reform Chairman James Comer (R-Ky.) today introduced the D.C. Taxing Authority Review Act (H.R. 9720), legislation requiring congressional approval of any act passed by the District of Columbia that imposes or increases a tax or fee. The bill comes as the D.C. Council considers tax increases that could drive businesses, residents, and investment out of the nation's capital city.

"Radical D.C. Democrats want to solve their spending problem by reaching deeper into taxpayers' pockets and driving further on the path to socialism. Let's be clear: higher taxes will not fix the financial mess they created. Faced with a billion-dollar budget hole, the D.C. Council has rejected necessary spending reforms and is instead now considering tax increases that would punish residents, burden businesses, and further weaken the District's economy. The Constitution gives Congress clear responsibility over the nation's capital, and we must prevent the D.C. Council's reckless fiscal policies from jeopardizing its future. The D.C. Taxing Authority Review Act ensures Congress fulfills its constitutional responsibility by reviewing and approving any D.C. legislation that imposes or increases a tax or fee," said Chairman Comer.

Background:

The D.C. Council has recently advanced proposals to impose new taxes on businesses and residents even as the District faces a budget shortfall of more than $1 billion dollars. Rather than make necessary spending reforms, the D.C. Council is considering a new Business Activity Tax on corporations with a substantial nexus in the District and a 3 percent tax on the investments and other income of its residents, who are already incredibly tax burdened.

The D.C. Taxing Authority Review Act requires Congress to approve any D.C. legislation that imposes or increases a tax or fee before it can take effect. Congress would have 60 days after receiving the legislation to pass a joint resolution of approval, and debate would be limited to one hour in each chamber to ensure expedited consideration.

Read the bill text HERE.