DC Statehood Tax Implications

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The bigger question you should ask is how fiscal transfers from the federal government will be affected by DC statehood. The Feds contribute a lot of money for DC's education system, plus shared maintenance agreements for land, streets, public space, etc.

Will those fiscal transfers on a per capita basis decline if DC gets statehood? Will the Federal government transfer large swaths of land to the DC state - eg, Rock Creek Park, Whitehaven Parkway, etc - and thus the state of DC is now on the hook for maintenance?

Lots of states have national parks and parkways in them that are maintained by the federal government.

You miss PP's larger point: DC gets a ton of Fed money now. No Fed money coming in - taxes will go up, don't you think?

Why will federal money stop coming in because DC is a state?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The bigger question you should ask is how fiscal transfers from the federal government will be affected by DC statehood. The Feds contribute a lot of money for DC's education system, plus shared maintenance agreements for land, streets, public space, etc.

Will those fiscal transfers on a per capita basis decline if DC gets statehood? Will the Federal government transfer large swaths of land to the DC state - eg, Rock Creek Park, Whitehaven Parkway, etc - and thus the state of DC is now on the hook for maintenance?

Lots of states have national parks and parkways in them that are maintained by the federal government.

You miss PP's larger point: DC gets a ton of Fed money now. No Fed money coming in - taxes will go up, don't you think?

Why will federal money stop coming in because DC is a state?

No, because states also receive federal money.

[Anonymous]

This is premature. DC will not get statehood so you shouldn't worry

[Anonymous]

Anonymous wrote:This is premature. DC will not get statehood so you shouldn't worry

It just passed the House today.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is premature. DC will not get statehood so you shouldn't worry

It just passed the House today.

You sweet summer child.

You forgot about Machin

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is premature. DC will not get statehood so you shouldn't worry

It just passed the House today.

You sweet summer child.

You forgot about Machin

This sweet summer child knows how to spell his name, though.

[Anonymous]

Anonymous wrote:The bigger question you should ask is how fiscal transfers from the federal government will be affected by DC statehood. The Feds contribute a lot of money for DC's education system, plus shared maintenance agreements for land, streets, public space, etc.

Will those fiscal transfers on a per capita basis decline if DC gets statehood? Will the Federal government transfer large swaths of land to the DC state - eg, Rock Creek Park, Whitehaven Parkway, etc - and thus the state of DC is now on the hook for maintenance?

The Feds pay the same amount, or less to DC for these things than they do to the 50 states. There is no more "federal payment" and in fact, DC pays more per capita in Federal tax than 22 states...certainly more than the "taker" states.

The Feds contribute ZERO to our parks and roads. Those are local dollars, except for a few roads that qualify for federal matching, as similar roads do in different states and cities.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The bigger question you should ask is how fiscal transfers from the federal government will be affected by DC statehood. The Feds contribute a lot of money for DC's education system, plus shared maintenance agreements for land, streets, public space, etc.

Will those fiscal transfers on a per capita basis decline if DC gets statehood? Will the Federal government transfer large swaths of land to the DC state - eg, Rock Creek Park, Whitehaven Parkway, etc - and thus the state of DC is now on the hook for maintenance?

Lots of states have national parks and parkways in them that are maintained by the federal government.

You miss PP's larger point: DC gets a ton of Fed money now. No Fed money coming in - taxes will go up, don't you think?

No, it doesn't. The "federal payment" ended in the 1990's.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The bigger question you should ask is how fiscal transfers from the federal government will be affected by DC statehood. The Feds contribute a lot of money for DC's education system, plus shared maintenance agreements for land, streets, public space, etc.

Will those fiscal transfers on a per capita basis decline if DC gets statehood? Will the Federal government transfer large swaths of land to the DC state - eg, Rock Creek Park, Whitehaven Parkway, etc - and thus the state of DC is now on the hook for maintenance?

Lots of states have national parks and parkways in them that are maintained by the federal government.

True. But I think the legislation may call for a clean break between the state of DC and the new National Capitol (which will solely be concentrated on the Mall, Capitol Hill, WH, and Supreme Court areas).

It pre-empts a legal challenge by opponents to just make everything outside that area the property of DC state. Other than Federal office buildings (which would clearly be Federal property), don't give the Feds a say on how DC land is used or controlled.

I'll need to look at it more closely. It's been a few years.

Not true. There would still be federal seats on various boards and commissions; national park service property and other federal property would still be federal, etc.

[Anonymous]

Anonymous wrote:As the commuters from outside the District are slowly creeping back in I would love to see them pay a commuter tax.

That will not happen. Businesses will simply move to the burbs. Many businesses have no real need to be in DC. The 3 jurisdictions have a compact that none will tax residents of the others who work in their jurisdictions. Not sure that DC loses out here.

[Anonymous]

Anonymous wrote:

Anonymous wrote:As the commuters from outside the District are slowly creeping back in I would love to see them pay a commuter tax.

That will not happen. Businesses will simply move to the burbs. Many businesses have no real need to be in DC. The 3 jurisdictions have a compact that none will tax residents of the others who work in their jurisdictions. Not sure that DC loses out here.

Plenty of businesses have need to be in DC, not only because of colocation benefits but also to attract and retain talented workers who would strongly prefer not to work in a soulless office park in Gaithersburg.

[Anonymous]

Anonymous wrote:DC already sets its own sales, property, and income taxes.

No change at all if it becomes a state.

The federal government makes direct payment every year to DC. This would presumably go away if DC becomes a state, and it would be in the same position as Nevada, Utah, Colorado, etc. where the feds own even more of the land.

[Anonymous]

What other dumb azz sht would a newly powerful dc council, as part of the new state of dc, so regarding taxing and spending? Would we look like California that is increasing tons of taxes all over the place? I mean honestly I would just rather be exempt from federal taxes if that was ever proposed rather than vote in Congress.

I just really don’t want a sht ton of taxes to fund summer programs for absentee kids like dc does. I don’t want to pour money down the drain on all these programs to combat poverty that have little other effect than fostering a culture of dependence and poverty anyway. Ugh. Can’t we just become a tax haven. I am liberal as hell. Can’t we legalize prostitution, weed, all drugs, gambling tax that and just leave income taxes low? I hate liberal do goodies who want to pay for types of stuff to grandfather poor people in place. Like projects. I wish we could just let the natural migration of residency follow market demand. If you can’t afford it, why should we pay to house the same generations of families in housing projects?

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is premature. DC will not get statehood so you shouldn't worry

It just passed the House today.

Which isn’t a Constitutional Amendment. Which is what’s required to turn DC into a state.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is premature. DC will not get statehood so you shouldn't worry

It just passed the House today.

Which isn’t a Constitutional Amendment. Which is what’s required to turn DC into a state.

Sez some random person anonymously on the internet.