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DC is unique in terms of the taxing power. I'm sure Arlington would love to tax income.

The state taxes income and then gives most of that money back to Arlington in the form of services and to a lesser extent, cash. While it's indirect, Arlington relies very significantly on income tax revenue.

What makes DC unique is that it is like both a state (which typically taxes income) and a city (which typically taxes property). Of course, many counties (like in MD) also tax income.

by Falls Church on Apr 2, 2012 9:43 am • link • report

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