Michael Brown and Jim Graham want to drive the wealthy out of the city.

[Anonymous]

Showing again that politicians have no idea how wealth is created. Attacking your highest paying tax base is just socialist style economics. DC already has the highest income tax rate in the region. This will just cause the wealthy (who are very mobile) to pack up and move to VA. The key is to reign in abusive government spending. When the District stops allowing people like Harriet Walters to steal $50m then we can talk.

[Anonymous]

Here is the article:

http://www.washingtonexaminer.com/local/2-D_C_-councilmen-to-propose-tax-hikes-on-the-wealthy-1073917-104181848.html

[Anonymous]

Let me give you a clue. It NEVER results in wealthy people leaving the district. It never has and it never will.

I was one of those people and I did move. But why? Because someone wants to increase my tax bill a few grand? No. The real pocketbook issues are the cost of a big house and private school for three kids. If you have bought into that, you are just not sensitive to small tax increases.

[Anonymous]

Anonymous wrote:Let me give you a clue. It NEVER results in wealthy people leaving the district. It never has and it never will.

I was one of those people and I did move. But why? Because someone wants to increase my tax bill a few grand? No. The real pocketbook issues are the cost of a big house and private school for three kids. If you have bought into that, you are just not sensitive to small tax increases.

You have no idea what you are talking about. There have been numerous studies that show that when you add millionaire taxes they go off the rolls. They either move, or change their state of domicile or use other methods to decrease their income and thus the state takes less from them any way. This happened in MD, the millionaires disappeared. Maybe YOU didn't move, and that's great but you are not the norm. Again it is bad policy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Let me give you a clue. It NEVER results in wealthy people leaving the district. It never has and it never will.

I was one of those people and I did move. But why? Because someone wants to increase my tax bill a few grand? No. The real pocketbook issues are the cost of a big house and private school for three kids. If you have bought into that, you are just not sensitive to small tax increases.

You have no idea what you are talking about. There have been numerous studies that show that when you add millionaire taxes they go off the rolls. They either move, or change their state of domicile or use other methods to decrease their income and thus the state takes less from them any way. This happened in MD, the millionaires disappeared. Maybe YOU didn't move, and that's great but you are not the norm. Again it is bad policy.

Yes I do. For instance, I know that the evidence to support your MD claim is really that MD experienced a net reduction in the number of millionaires. So did the country as a whole that year, because net worth took a hit across the board. If there are numerous studies, though, let's see three, please. If you have 'em, show 'em. If not, stop pretending.

[Anonymous]

Anonymous wrote:Let me give you a clue. It NEVER results in wealthy people leaving the district. It never has and it never will.

I was one of those people and I did move. But why? Because someone wants to increase my tax bill a few grand? No. The real pocketbook issues are the cost of a big house and private school for three kids. If you have bought into that, you are just not sensitive to small tax increases.

This P is living in his or her own world. I, for example, did survey all 3 jurisdictions when choosing where to live. Va clearly had the lowest taxes. I ended up in Va but did later move to Md for family reasons. I also know several others who specifically choose to live in Va for similar reasons. No doubt, as with me, there were other factors as well, but taxes ceertainly was one of them. FYI. Where do you think most of the athletes live?? Most live in Va. This P is right in one sense. There are certain professionals who work and live in DC who, in essence, must live in DC. Many lawyers and most lobbyists need to be close to the USG. Those fundraisers are easier to attend if one lives in DC. Further, I only point out that Crystal City and Rosslyn would not really exist if DC had been more hospitable to the business community, including on taxes. Moreover, the tremendous growth in the last 20 years has been in Md and Va, not DC. There are entire business communities in Va and Md who couldn't care less about DC. Finally, I wonder how many of the region's super wealthy (ie, not lawyers, lobbyists, etc) live in DC as a primary residence.

[Anonymous]

So long, farewell!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Let me give you a clue. It NEVER results in wealthy people leaving the district. It never has and it never will.

I was one of those people and I did move. But why? Because someone wants to increase my tax bill a few grand? No. The real pocketbook issues are the cost of a big house and private school for three kids. If you have bought into that, you are just not sensitive to small tax increases.

This P is living in his or her own world. I, for example, did survey all 3 jurisdictions when choosing where to live. Va clearly had the lowest taxes. I ended up in Va but did later move to Md for family reasons. I also know several others who specifically choose to live in Va for similar reasons. No doubt, as with me, there were other factors as well, but taxes ceertainly was one of them. FYI. Where do you think most of the athletes live?? Most live in Va. This P is right in one sense. There are certain professionals who work and live in DC who, in essence, must live in DC. Many lawyers and most lobbyists need to be close to the USG. Those fundraisers are easier to attend if one lives in DC. Further, I only point out that Crystal City and Rosslyn would not really exist if DC had been more hospitable to the business community, including on taxes. Moreover, the tremendous growth in the last 20 years has been in Md and Va, not DC. There are entire business communities in Va and Md who couldn't care less about DC. Finally, I wonder how many of the region's super wealthy (ie, not lawyers, lobbyists, etc) live in DC as a primary residence.

I am not saying that tax rates do not matter. OP contends that people who already live here would leave over the proposed tax increase. Here is why I think it's absurd.

Let's do a hypothetical situation. Lets' say my income is $1 million. The increased cost of living in DC is

+31,000 / year additional annual mortgage payments
+54,000 / year school for 2 kids
+27,500 / year in income taxes
-15,000 / yr decrease in federal tax bill due to state taxes paid (SWAG guess because AMT is hard to estimate here)
+0 / yr property tax bill. I'm calling the lower DC rate but the higher real estate assessment a wash.
________
$102,5000 = the grand total annual price to live in DC vs. NoVA as a family making $1 million/yr with 2 kids

Graham's tax increase would cost 0.4% for incomes over $500,000. So for a $1 million income, the increase works out to $2000/yr, probably $1300 after revised federal taxes.

Here are the absurdities OP is suggesting:

I have already decided to live in DC and pay an extra $102K/yr, BUT I am so incensed over a $1300 increase in after-tax income that I would pick up my ball and go to VA.

To pay this tax bill, I could work another 3.5 hours per year, or 50 seconds per day. Instead, I'd rather move to a place where my commute is 10 or more minutes longer, each way, each day.

I would have to sell my house, buy another house, and pay closing costs and a real estate commission.

I will probably take my kids out of school or cause them to have to commute in to their present one.


So while I agree that it makes sense to do what you did, the idea that rich people are going to flee to the burbs to protest a $1300 tax bill is just not credible.

[Anonymous]

DC Clasess:
1M and over = rich
250k - 1M = middle class
40-250k = poor
40K and below = homeless

[Anonymous]

1409 seems to think that the wealthy do not pay attention to how much tax they pay. That is nonsensical. The long standing criticism about the differential between ordinary and capital gains taxes is that the wealthy and their tax advisors try to figure out how they can reduce their taxes. So, the idea that these same people will not pay attention to increasing tax rates in DC does not make sense. Moreover, for some of the wealthy, they will simply change their official state of residence. These individuals already own houses elsewhere, frequently in low tax states such as Florida. So, for them spending (officially) 180 plus days in Florida versus 100 is no big deal. This is made worse by estate taxes. Very few of the super wealthy in the region live in DC anyhow due to taxes. The NoVa tech money is not in DC. And their wealth makes lawyers look poor. So, I, in fact, would reduce the taxes on the super wealthy and perhaps elimiate the estate tax, which would have the effect of attracting these individuals to DC. Once here, they will spend money, contribute to the community, etc

[Anonymous]

Anonymous wrote:1409 seems to think that the wealthy do not pay attention to how much tax they pay. That is nonsensical. The long standing criticism about the differential between ordinary and capital gains taxes is that the wealthy and their tax advisors try to figure out how they can reduce their taxes. So, the idea that these same people will not pay attention to increasing tax rates in DC does not make sense. Moreover, for some of the wealthy, they will simply change their official state of residence. These individuals already own houses elsewhere, frequently in low tax states such as Florida. So, for them spending (officially) 180 plus days in Florida versus 100 is no big deal. This is made worse by estate taxes. Very few of the super wealthy in the region live in DC anyhow due to taxes. The NoVa tech money is not in DC. And their wealth makes lawyers look poor. So, I, in fact, would reduce the taxes on the super wealthy and perhaps elimiate the estate tax, which would have the effect of attracting these individuals to DC. Once here, they will spend money, contribute to the community, etc

I agree 100%. However the type of people that move to the District will never share that view. Call it self-segregation. They feel that you can create wealth for the poor by stealing it from the rich. We know it doesn't work but they don't mind trying again and again. A lot of them just have an aversion to seeing wealthy people. plain and simple

[Anonymous]

Anonymous wrote:1409 seems to think that the wealthy do not pay attention to how much tax they pay. That is nonsensical. The long standing criticism about the differential between ordinary and capital gains taxes is that the wealthy and their tax advisors try to figure out how they can reduce their taxes. So, the idea that these same people will not pay attention to increasing tax rates in DC does not make sense. Moreover, for some of the wealthy, they will simply change their official state of residence. These individuals already own houses elsewhere, frequently in low tax states such as Florida. So, for them spending (officially) 180 plus days in Florida versus 100 is no big deal. This is made worse by estate taxes. Very few of the super wealthy in the region live in DC anyhow due to taxes. The NoVa tech money is not in DC. And their wealth makes lawyers look poor. So, I, in fact, would reduce the taxes on the super wealthy and perhaps elimiate the estate tax, which would have the effect of attracting these individuals to DC. Once here, they will spend money, contribute to the community, etc

I am 1409 and I am wealthy. And I do try to minimize my tax bill. But no way would I move to one state or another over $1300 per million dollars of earned income. THAT is the point.

[Anonymous]

I tend to be a Democratic but think it is nuts for DC to increase taxes on the wealthy. It is not simply whether a current resident will move to the burbs to save a few thousand dollars. It is more importantly whether new residents to the area move to DC or whether a couple buying their first house buy in DC or the burbs. Raising taxes on the wealthy simply increases the current differential between DC and Va in particular.

[Anonymous]

A couple buying their first house should be more concerned about the taxes that apply to them. DC's overall tax rate is higher, and its property tax rate is lower. If the concern is new residents, the big issue is not attracting the occasional person who makes $1+ million each year. It is attracting many families with solid incomes.

So your concern would lead to considering a tax cut for incomes that hit the lower end of the 8.5% rate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:1409 seems to think that the wealthy do not pay attention to how much tax they pay. That is nonsensical. The long standing criticism about the differential between ordinary and capital gains taxes is that the wealthy and their tax advisors try to figure out how they can reduce their taxes. So, the idea that these same people will not pay attention to increasing tax rates in DC does not make sense. Moreover, for some of the wealthy, they will simply change their official state of residence. These individuals already own houses elsewhere, frequently in low tax states such as Florida. So, for them spending (officially) 180 plus days in Florida versus 100 is no big deal. This is made worse by estate taxes. Very few of the super wealthy in the region live in DC anyhow due to taxes. The NoVa tech money is not in DC. And their wealth makes lawyers look poor. So, I, in fact, would reduce the taxes on the super wealthy and perhaps elimiate the estate tax, which would have the effect of attracting these individuals to DC. Once here, they will spend money, contribute to the community, etc

I am 1409 and I am wealthy. And I do try to minimize my tax bill. But no way would I move to one state or another over $1300 per million dollars of earned income. THAT is the point.

Yes, that's right. Are taxes a factor in deciding where to live? Sure. Are they the ONLY factor? Maybe for you, but not me - and I would guess, not a lot of others. That's a pretty dismal way to look at life.