D.C. Council member Brianne K. Nadeau (D-Ward 1) this week introduced a new tax on the city’s highest earners, reviving a proposal she has floated for months as city lawmakers search for new sources of revenue amid a budget shortfall.
The proposal would impose a 3 percent tax on investments and other passive income for individuals earning more than $400,000 a year and households earning more than $500,000 annually. The tax would generate about $200 million the first year and $100 million in subsequent years, Nadeau said.
The measure, introduced Tuesday, comes weeks after the council approved a budget that tapped into the city’s reserves to avoid huge cuts to some services amid dim revenue projections — despite strong objections by Mayor Muriel E. Bowser (D) and the city’s chief financial officer.
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