D.C. City Council Defeats Estate Tax Increase
Earlier today, the D.C. City Council voted decisively 9-4 against an amendment that would have forced more district businesses into paying the city’s death tax. The amendment sought to freeze the current district estate tax exemption at $2 million rather than raising the exemption to match the $5.49 million federal exemption as scheduled. The Family Business Coalition sent a letter to the D.C. City Council last week outlining its opposition to the proposed tax increase.
DC is currently one of only 18 states that levy a transfer tax. Blue and red states alike are moving towards eliminating their death taxes entirely or making their taxes less burdensome. DC’s action today keeps the district competitive with surrounding states. The defeat of this amendment shows that the district is committed to maintaining predictability in the tax code — a key concern for Main Street businesses.
The Family Business Coalition commends the D.C. City Council for defeating this amendment and encouraging multigenerational family businesses to continue investing in the future of Washington, D.C.