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Ken wrote "Either make the Hoyer Myth a reality by covering this structural deficit with an annual payment to the District of $470 million to $1.1 billion, based on the GAO’s estimate, or allow the District to tax the income of nonresident workers."

Ok so in scenario 1, the District gets more money from the federal budget which would basically be an annual revenue transfer from all Americans to the DC area. I think it's pretty clear that dumping money into DC - most of which will come from outside of DC - will be good for the DC area.

In scenario 2, the District gets more money from commuters who live primarily in NoVa and SoMa. Which means less money goes to Annapolis and Richmond. But much of that money that goes to those states doesn't come back to the DC area - especially in NoVa. So, that ends - or at least reduces - a revenue transfer from NoVa to the rest of Virginia (and the same is true of Maryland). The fact is that if you live in suburban MD or VA, you should WANT a commuter tax, because that money will be used in DC, where you spend 40-60 hours a week, instead of Havre de Grace and Roanoke.

But even if you don't see it in a zero-sum game sort of way, it's still good for Greater Washington. It does no one in the area any good to have DC schools struggling. It does no one any good to have bad roads to commute on. It does no one any good to have DC crime - like petty theft at the Metro stations that commuters use - rise. Etc...

So, that's why.

by David C on Jul 29, 2012 10:11 pm • link • report