(p. B1) The capital’s financial affairs were in such disarray by the mid-1990s that they were taken over by a federal financial control board that operated until 2001. Yet in 2014 the council cut corporate and business taxes, reduced individual rates for everyone earning less than $1 million and broadened the tax base by eliminating many loopholes.
As a headline on the conservative website The Daily Caller put it, “Hell Freezes Over: DC Passes Tax Reform.”
In the ensuing years, economic growth and tax receipts have surged, enabling the city to accelerate cuts that were being phased in. The legislation was not revenue neutral, in the sense that broadening the tax base offset the reduction in rates. It was a tax cut. But in a development that would surely warm the hearts of pro-growth Republicans, the economic lift was so strong that tax receipts increased, and last (p. B3) year hit a record.
For the full commentary, see:
JAMES B. STEWART. ”For Tax Reform Lessons, Congress Needn’t Look Far Common Sense.” The New York Times (Fri., September 1, 2017): B1 & B3.
(Note: the online version of the commentary has the date AUG. 31, 2017.)