In happier government news, D.C. tax rate falls a little bit
Starting today, shopping will cost you a tiny bit less than it did yesterday. In a revolutionary effort to stimulate the economy, the D.C. Council voted to lower the sales tax rate from 6 percent to 5.75 percent.
Tax rates on food and drinks at restaurants (10 percent), tobacco (12 percent) and some rentals (14.5 percent) will remain at the higher rates. In addition, the tax on medical marijuana will remain at six percent.
Last June, the D.C. Council voted to lower the tax rate. The rate was initially increased in 2009 when the city tried to fill a $600 million hole in the budget. In a turn of events, the city now projects a $600 million budget surplus over the next five years. By lowering the tax rate, they are directing some of this money towards the citizens of D.C.
“We promised the taxpayers that when we raised the taxes that we’d lower it back down again,” Council member for Ward 2 and mayoral candidate, Jack Evans, told the Washington Times. “This is the perfect time to lower those taxes.”
Council member Tommy Wells, representing Ward 6 and another mayoral hopeful, proposed an amendment that would have increased deductions on residents’ income taxes. He argued that this would save people more money than lowering the income tax, but the amendment was tabled for future discussion.
Photo: via Flickr