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Also, VA has the power to do a commuter tax and chooses not to. Lots of MD residents cross the river each day to jobs in VA and yet MD and VA have reciprocity. Evidently, VA can manage without a commuter tax just fine.

by Notsofast

Ummm -- what part of the taxing problem are you missing?

Notwithstanding that DC has a much greater percentage of its workforce and percentage of money earned by people from outside the city, the thing that REALLY makes DC different is the inescapable fact that most of the most valuable real estate is not taxable (either owned by federal or foreign governments (or, even international institutions)) and even a bunch of DC residents aren't taxable because of their status. Frankly, it isn't even just that these centrally-located properties and their government activities aren't taxable -- it's that all these structures are not generating as much economic activity as they would if they were in private hands. There is no city in the world where this situation exists to the extent it does in DC. The federal payment does not come close to making up that difference, but it is an appropriate mechanism that shouldn't be linked to commuter taxes. Totally separate ideas.

by Fischy (Ed F.) on Jul 28, 2012 5:54 pm • link • report

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