Stop DC's Tax Hikes Before They Hit YOU

The politicians say that the increase in the E911 tax -- from 76 cents to $1.15 per month for residential wireless and landline service -- won't cost much. What they don't tell you is that if they get their way, the total government burden on landline telephone service in the District - all taxes and fees included -- would climb to a whopping 36 percent! That's nearly twice as bad as Maryland consumers have to bear, and over twice what Virginians pay. Wireless consumers would see their burden take a big jump too.

But that's not all. The budget would freeze the standard deduction and personal exemption at their current levels instead of making the normal adjustment for inflation. Simply put, you will pay higher income taxes even if your wages are simply keeping up with the cost of living. Although home values seem to be bottoming out and even recovering in some parts of the District, freezing the homestead exemption will hurt many homeowners who are struggling to keep up with their mortgages. How smart is it to make people poorer at a time when they need their money the most?

True, the proposed Fiscal Year 2010 budget for the District of Columbia represents a 4 percent decrease in expenditures compared to FY 2009 -- an admirable start. But DC spending has increased an average of 11 percent a year since the beginning of this decade! Meanwhile, the District's population has barely grown 3 percent over that same period. That means there's plenty more room for budget reductions, since the cost of many government services rises or falls depending on population changes.

The Council could vote on these tax hikes in a matter of days -- which is why you must contact city officials now!

Sample Letter for Campaign

Subject: Vote NO on the tax hikes in the Mayor's budget proposal

Dear [ Decision Maker ] ,

I urge Members of the City Council to vote NO on the tax hikes in the Mayor's budget proposal, especially the plan to raise the "911 tax" on telephones.

The budget calls these increases "fees" or "adjustments," but I'm not fooled. A huge share of my phone bill goes to taxes of many kinds, and the Mayor's budget will only make it worse. Freezing the income and property tax exemptions will make my tax load heavier too. What happened to all the money the DC government has already taken from us? The current proposal does cut some spending, but since the beginning of this decade DC government's budget has grown over 10 percent a year.

Especially in this slow economy, city leaders should concentrate on honest tax relief for everyone, not sneaky tax increases. Please, reject this budget and work harder to reduce wasteful spending!

Sincerely,

Campaign Launched:
May 07, 2009

Background Information

In late 2000, legislation passed by the District Council began to impose a "surcharge" of $0.56 per month on wireline and wireless subscribers. The surcharge was, according to the new law, intended "solely to defray personnel and non-personnel costs incurred by the District of Columbia and its agencies and instrumentalities in providing a 9-1-1 system" and "direct costs incurred by wireless carriers in providing wireless E911 service."

It hasn't worked out that way. Despite completion of enhanced 9-1-1 services for wireless consumers, none of the companies that worked to provide them have been reimbursed as the law stated.

Furthermore, proceeds from the "E911" tax aren't even set aside for their stated purpose -- to cover the costs of implementing and maintaining the 9-1-1 telephone emergency system. District officials are proposing to siphon off some of the E911 proceeds to pay for janitorial services and security. These kinds of shenanigans -- supposedly prohibited by District law -- may have been occurring for years. Too bad taxpayers aren't able to find out, since the program has never been thoroughly audited. Only a paltry, superficial examination by the District's Inspector General has been conducted.

During his 2006 campaign Mayor Adrian Fenty promised that he would not raise taxes while in office, and now he's playing word games to con DC residents into thinking he's kept his pledge. For example, the Mayor and his City Administrator Dan Tangherlini call the tax hike on telephones for E911 service a "fee" and a "charge." But make no mistake -- this will hit your wallet just like any other tax.

Other tax increases in the budget are disguised as "freezes," but here again you pay the price. By not adjusting the income tax standard deduction and personal exemption, as well as the property tax homestead exemption, the Mayor's budget would subject more of your earnings and your home's value to DC's notoriously high taxes. There's even a $51 annual charge that would apply to your electric bill for streetlight maintenance.

Tax hikes should never be the first resort to meet budget shortfalls, but in this slow economy, they are fiscally suicidal. When the public sector takes more, consumers and businesses have less to pay their bills and stay afloat.

It's time for local officials to confront reality: DC's tax burden is too high already. Instead of picking on phone customers or playing semantic games, politicians should cut income, property, and business taxes across the board, and concentrate on budget basics.

Please e-mail City Council Members and tell them to reject new taxes!