District of Columbia residents earning more than $350,000 annually will have to dig a little deeper in their pockets around tax time.
The D.C. Council approved the tax hike on the wealthy by a vote of 7-6 to generate more money for the city. The good news is that the increase will be removed by 2015.
Supporters of the tax increase feel it is a long overdue step toward financial stability.
“This is about good tax policy by creating a new top bracket,” said Council member Phil Mendelson, according to the Washington Post. Mendelson is a Democrat and a sponsor of the tax increase.
“People who earn $350,000, $400,000, $1 million, should not be paying the same rate as someone earning $40,000,” he added, echoing a similar sentiment by President Barack Obama about federal tax rates.
Mayor Vincent Gray is expected to sign the measure. This bill is the second…