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What wasn't considered is the fact that many, if not most, wealthy DC dwellers keep legal residency in no-income-tax states and avoid all DC income taxes, (unless they're in a certain profession with a small professional tax).

Even for wage earners it's common to purchase a Delaware beach house, rent it for fewer than 6 months, and claim that one commutes the 1-2 hours for at least 6 months. For investors it's much easier and they have a variety of states to choose legal residency from.

While a blanket DC earnings tax may be impossible absent statehood to get through Congress, one which exempted residents of Maryland and Virginia could possibly get through.

The revenue drain is enormous and it's an open joke in DC.

by Tom Coumaris on Mar 2, 2011 8:54 pm • link • report

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