Graham’s bill is accidental tax cut for wealthy

DC Councilman Jim Graham wanted to boost DC revenues and raise taxes on the wealthy, and so he introduced the "Equitable Income Tax Act of 2009." There's a problem, though: the bill would actually provide a massive tax CUT to those earning just over $500,000, and some tax cut to everyone between $500,000 and $9.6 million. I tell the tale in an Examiner piece today.

Ryan Ellis, tax policy director at Americans for Tax Reform, which opposes all tax increases, says the bill would reduce taxes. “The bill as written is a massive tax cut for D.C. households making over $500,000 per year.” Ellis added, “According to this bill, someone with taxable income of $499,999 would pay $41,300 in D.C. income tax. Someone making $500,001 would pay $5,000 in D.C. income tax.”

Read the whole piece here, and read Graham's bill here.