DC Statehood Tax Implications

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

What if commuters don’t return? District officials have to be at least a little concerned over the $ tied to commuters spending money here. I seriously doubt we’ll see feds return to the offices in any significant number and that’s going to have a major ripple effect.

That's a good question, but even if not a single employer returns to the butts in seats Monday through Friday paradigm, as long as workers spend at least some time in the office, downtown DC still retains the colocation and lifestyle advantages relative to soulless Gaithersburg office parks.

It would be SWEET if I could work in one of those soulless office parks in Gaithersburg instead of downtown.

Then I could pick my girls up from school everyday (private) and be home in time tor dinner at a civil hour and then a nice dog walk.

As opposed to now, with a 70 minute redline commute. Yeah, bring on that soulless office park!!!

[Anonymous]

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?

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.

This is rich. Where do you think those incomes in DC are coming from? This whole area is parasitic on the government. Yes, we pay $$$ but the money comes from the government in the first place.

[Anonymous]

Taxes will increase because the size of an already bloated govt. will increase. Then we have to enlarge our prison because we’re bringing our jailed population back to DC. We’ll lose DC Tag and everyone will attend UDC for instate tuition. Also, we’ll lose our Medicare additional payment. Of course much money will be repurposed for BMI payments and to build affordable housing.

Think we’ll implement a commuter tax to recoup costs? Go ahead see what happens. Downtown DC will become a ghost town.

Truth? DC Statehood has zero percent chance of passing and even Mayor Bowser is aware of this.

[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?

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.

This is rich. Where do you think those incomes in DC are coming from? This whole area is parasitic on the government. Yes, we pay $$$ but the money comes from the government in the first place.

So you are equating someone's income from an employer to a federal payment? THAT is rich.

[Anonymous]

Anonymous wrote:Taxes will increase because the size of an already bloated govt. will increase. Then we have to enlarge our prison because we’re bringing our jailed population back to DC. We’ll lose DC Tag and everyone will attend UDC for instate tuition. Also, we’ll lose our Medicare additional payment. Of course much money will be repurposed for BMI payments and to build affordable housing.

Think we’ll implement a commuter tax to recoup costs? Go ahead see what happens. Downtown DC will become a ghost town.

Truth? DC Statehood has zero percent chance of passing and even Mayor Bowser is aware of this.

Nothing will change except DC will be treated like a state and have some senators and a congressman. They will change "wards" to "counties" and that is about it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Taxes will increase because the size of an already bloated govt. will increase. Then we have to enlarge our prison because we’re bringing our jailed population back to DC. We’ll lose DC Tag and everyone will attend UDC for instate tuition. Also, we’ll lose our Medicare additional payment. Of course much money will be repurposed for BMI payments and to build affordable housing.

Think we’ll implement a commuter tax to recoup costs? Go ahead see what happens. Downtown DC will become a ghost town.

Truth? DC Statehood has zero percent chance of passing and even Mayor Bowser is aware of this.

Nothing will change except DC will be treated like a state and have some senators and a congressman. They will change "wards" to "counties" and that is about it.

+1. Those who want to see the details, they’re in this thread: https://www.dcurbanmom.com/jforum/posts/list/779636.page

[Anonymous]

As a new state, dc would legalize prostitution, decriminalize drugs, promote restorative justice over incarceration and generally reform policing to be more lenient (which would exacerbate crime), and raise taxes. It would be another Portland, except one half of the citizens would be poor.

[Anonymous]

Anonymous wrote:As a new state, dc would legalize prostitution, decriminalize drugs, promote restorative justice over incarceration and generally reform policing to be more lenient (which would exacerbate crime), and raise taxes. It would be another Portland, except one half of the citizens would be poor.

"I think that denying Washingtonians representation in Congress is acceptable because I disagree with their policy positions"

[Anonymous]

Anonymous wrote:As a new state, dc would legalize prostitutiontax an existing unregulated business, improves wages and provides health and safety for all involved, decriminalize drugslike all the other states are doing now, can tax it and have the money go to addressing the opiod issue, promote restorative justice over incarceration because locking a 17 year old up with no chance for education or rehab for the next 50 years is costly, more costly than sending a kid to harvard and generally reform policing to be more lenient (which would exacerbate crime not necessarily, cite?), and raise taxes DC has a AAA bond rating and a massive budget surplus and emergency fund, much greater than most states - we do just fine managing our affairs, thank you. It would be another Portland, except one half of the citizens would be poor.most people who have visited LOVE Portland, thanks for making the point

[Anonymous]

Anonymous wrote:

Anonymous wrote:As a new state, dc would legalize prostitution, decriminalize drugs, promote restorative justice over incarceration and generally reform policing to be more lenient (which would exacerbate crime), and raise taxes. It would be another Portland, except one half of the citizens would be poor.

"I think that denying Washingtonians representation in Congress is acceptable because I disagree with their policy positions"

Worse.

"I think that denying Washingtonians representation in Congress is acceptable because I am a poor fool who believes lies pushed by the fascist party trying to destroy American democracy."

[Anonymous]

Logistics? When part was retroceded to VA it was also about infrastructure and who will pay for it-Federal? State? Local?

MD retrocession of mainly wards 1.3.4.5.7.8 is estimated at 75% of the pop and 70% of the households. There is the Stadium Armory which should also stay DC. New use for land? FBI on federal property?

States have a multiplicity of areas from rural to suburban to urban plus a multiplicity of business from agriculture to manufacturing to service industries. They also have economic engines that support jurisdictions with low SES populations. Maryland and Baltimore which used to be the economic powerhouse of the state for most of it's existence.

Local taxes- New State could go Virginia and tax on annual Fair Market Value. That would up the take on the old wards 3 and 4. New state could do whatever income tax it wants on residents. Wash DC would be federal and people would pay local income tax to their own state.

Persons living in the fed zone? Would they move out? Buy outs? If left voting status is the same as current.

Schools Impact Aid and anything federal- New State would be like everyone else. Anyone left living in the Fed Zone would be part of some sending agreement with New State or have it's own small school district. Cities of Falls Church and Fairfax have them.

New State-buys all other Federal Property like the Zoo, National Arboretum, VP House keeping new borders of Washington DC contiguous. Stick the VP in Blair House even though it was bought in 1942 and US base of Churchill.
Objections to Churchill are not uniform throughout the USA.
Zoo can move to land near Dulles since VA already has the Smithsonian at Air & Space near Dulles.

Revenue- contiguous DC provides it's own police, fire, schools, road maintenance.

USA - why are foreign government affiliated properties on Impact Aid forms? They should all be paying standard property taxes.

[Anonymous]

Anonymous wrote:I think this is a good question. I'm all for statehood even if my DC taxes go up but I'm curious how this will work and how DC will transition to paying for all the things the federal government currently pays for.

What about the proposal that Dc get absorbed by MD? Assuming the FEDS would carve out their swathe to keep and stop paying DC anything, just run it themselves. MD would have to dispense money back to DC from the taxes wed pay to MD.

[Anonymous]

Anonymous wrote:Logistics? When part was retroceded to VA it was also about infrastructure and who will pay for it-Federal? State? Local? virginia retrocession was about slavery

MD retrocession of mainly wards 1.3.4.5.7.8 is estimated at 75% of the pop and 70% of the households. There is the Stadium Armory which should also stay DC. New use for land? FBI on federal property? the federal district would be the white house, capitol, supreme court, and related federal buildings, as well as potentially, the federal triangle buildings.

States have a multiplicity of areas from rural to suburban to urban plus a multiplicity of business from agriculture to manufacturing to service industries. They also have economic engines that support jurisdictions with low SES populations. Maryland and Baltimore which used to be the economic powerhouse of the state for most of it's existence.

Local taxes- New State could go Virginia and tax on annual Fair Market Value. That would up the take on the old wards 3 and 4. New state could do whatever income tax it wants on residents. Wash DC would be federal and people would pay local income tax to their own state. the taxes in Douglass Commonwealth wouldn't change

Persons living in the fed zone? Would they move out? Buy outs? If left voting status is the same as current. only the president and their family would be living in the federal zone

Schools Impact Aid and anything federal- New State would be like everyone else. Anyone left living in the Fed Zone would be part of some sending agreement with New State or have it's own small school district. Cities of Falls Church and Fairfax have them. so if the president has school age kids, they would be eligible for DCPS or if they chose and indpendent school, that route, otherwise, not applicable

New State-buys all other Federal Property like the Zoo, National Arboretum, VP House keeping new borders of Washington DC contiguous. Stick the VP in Blair House even though it was bought in 1942 and US base of Churchill. nope, federal goverment would still own them, just like it owns national parks, indepdence hall etc.
Objections to Churchill are not uniform throughout the USA.
Zoo can move to land near Dulles since VA already has the Smithsonian at Air & Space near Dulles. zoo wouldn't move. it already has a shenendoah property

Revenue- contiguous DC provides it's own police, fire, schools, road maintenance. it already does, this wouldn't change

USA - why are foreign government affiliated properties on Impact Aid forms? They should all be paying standard property taxes. International treaty - US doesn't pay local property taxes elsewhere, same for foreign properties in DC as well as consulates in Chicago, NY, SF etc[b]

Really, nothing would change other than DC would be represented with a voting member of the House and 2 senators.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think this is a good question. I'm all for statehood even if my DC taxes go up but I'm curious how this will work and how DC will transition to paying for all the things the federal government currently pays for.

What about the proposal that Dc get absorbed by MD? Assuming the FEDS would carve out their swathe to keep and stop paying DC anything, just run it themselves. MD would have to dispense money back to DC from the taxes wed pay to MD.

they don't pay anything now...status quo

[Anonymous]

Anonymous wrote:

Anonymous wrote:As a new state, dc would legalize prostitution, decriminalize drugs, promote restorative justice over incarceration and generally reform policing to be more lenient (which would exacerbate crime), and raise taxes. It would be another Portland, except one half of the citizens would be poor.

"I think that denying Washingtonians representation in Congress is acceptable because I disagree with their policy positions"

No. In dc born and bred. I’m from SE. I just know what a newly liberated, liberal city council would do because I have lived here so long. They would jack taxes way up to fund the same generations of families in public housing, in perpetuity, so as not to lose their political seats.

This public sector in this city is also still highly dysfunctional. I don’t know if it’s a legacy of the Barry years or what, but even with all the new wealth, somehow shtty agencies like dcra continue to provide poor service year after year. I don’t mind. A lot of the dysfunction works for me as a commercial real estate owner. Im just a realist about this stuff. Dc has massive problems. As a state it would be super liberal in trying to solve them. These problems, many of which are intractable and culture driven, have no answers. There is no solution. Millions and millions of dollars over decades have been thrown at the problems, and there is nothing to show for it.

If dc became a federal tax haven versus a state I would be fine with that.