Loose Lips

Read My Lips: No New Taxes in Gray’s Budget

Hot off the rumor mill, LL hears from a council source that Almost Mayor Vince Gray will not be proposing any new tax increases as part of his proposed budget to fill a $188 million gap. Gray's plan calls for furlough days for city employees, according to LL's trusted source.

If true, it's a move that will earn kudos from the more fiscally conservative set while earning scorn from  social services advocates and labor unions.

Anyway, take this info with a grain of salt as Gray's team hasn't even sent out its final version of a budget to the rest of the council. LL will update when/if he gets confirmation.

  • Tom M.

    Because this is only about the current Fiscal Year mess, i am frankly not suprised about the alleged absence of revenue/tax increases. In order to make a material difference as the sand runs out of the current fiscal year, you'd have to put forward large one time (shock and awe is never good politics) or modest to large ongoing changes. Not enough time would pass for much dough to roll in even from modest increases. The only exception would be a one time or ongoing surcharge on income taxes that would be retroactive -- covering all income earned in 2010? I'm not sure that is practial (affected payers' witholding rates were set LAST December/January) nor if it would be quite legal. Spending cuts, as well, have some of the same limitations. You can only get big money by big cuts when they extend over a relatively short time. But remember folks, this is less than a $200m "problem" when the DC has over $6 b in revenues. That is a small percent overall. The real problem, after four years of District spending more than it was taking in, is NEXT year. I'm predicting that the Almost-Mayor will be adding "revenue enhances" among his xmas and stocking stuffer list for this holiday season... Stand by, its going to be a bumpy budgeting time.

  • Jim

    Hurray for Gray! Tax Increases would be a stupid idea. DC taxes are already high. Higher taxes will only serve to drive more people and business into Maryland and Virginia.

  • Truth Hurts

    How about selling the Wilson building? It'd bring in lots of dough.

  • Terry Miller

    They sold the District building years ago to the feds, and then had to buy it back after it was renovated.

  • City Dude

    You completely missed today's appointment of Allen Lew as city Administrator!! This is a great announcement..The man is the Master Builder and he will build a better bull pen and a better city...

  • Anonymous

    How on earth do you mismanage 68.25 square miles DC? One word. Malfeasance!!!!

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