House committee passes bill restricting D.C.’s power to raise taxes
A House committee approved new legislation that would revoke the D.C. Council’s authority to pass new tax hikes.
WASHINGTON - A House committee approved new legislation that would revoke the D.C. Council’s authority to pass new tax hikes, setting off a sharp debate on Capitol Hill over local authority and congressional oversight.
The measure, titled the "D.C. Taxing Authority Review Act," was advanced by Republicans on the House Oversight Committee.
Proposed changes
What we know:
Under current law, when the D.C. Council passes a tax hike, Congress has a 30-day review period before the policy takes effect.
Under the new legislation, both the U.S. House of Representatives and the U.S. Senate would be required to vote and explicitly approve any proposed D.C. tax hike before it could go into effect.
House Republicans argue the bill is necessary to protect D.C. taxpayers from excessive local government spending, pointing to the Council's upcoming hearing this fall to explore new revenue sources and its recent approval of a 20-cent food delivery tax. The delivery tax prompted DoorDash to voice support for the GOP legislation.
What they're saying:
Republican lawmakers criticized local District leaders during the proceedings.
"Radical D.C. Democrats want to solve their spending problem by reaching deeper in D.C. taxpayers’ pockets in driving further on the path to socialism," said Rep. James Comer (R-Ky.).
Rep. Gary Palmer (R-Ala.) said, "What we’re trying to do is make Washington, D.C. a successful city. It’s not a successful city."
"I support it after watching the District subject its residents and visitors to years of petty fines, predatory fees, and tax hikes," said Rep. Scott Perry (R-Pa.).
House Democrats and D.C. officials strongly denounced the measure, describing it as a direct overreach of congressional power and the single biggest threat to local governance in the District since the Home Rule Act was enacted in 1973.
Critics warned that the bill would effectively turn the U.S. Congress into a "super-sized D.C. Council."
In a statement, Washington, D.C., Mayor Muriel Bowser cautioned that the legislation would also roadblock the local government's ability to reduce taxes.
"This would render the District incapable of recovering from the debilitating impacts of COVID, federal remote work, and DOGE," she said. "A safe and beautiful Nation's Capital can only be sustained with a vibrant economy. While the federal government should not touch the District's ability to raise and spend its local dollars, they can and should help us replace the economic activity lost through reductions to the federal workforce and a shrinking federal footprint — that would help us ‘unstick’ this period of slowed growth."
Democratic lawmakers also voiced strong opposition during the debate.
"If [President] Donald Trump or Congressional Republicans want to run D.C., they should run for Mayor or the Council," said Rep. Robert Garcia (D-Calif.).
"This bill flips the current congressional review process for D.C. laws on its head," said Del. Eleanor Holmes Norton (D-D.C.).
"Seriously!? We can’t even pass our own bills! And now you wanna add to that and pass the bills of D.C.," said Rep. Maxwell Frost (D-N.Y.).
What's next:
This legislation marks the 20th bill introduced by House Republicans this session aiming to alter District laws, assume control of local public safety, or limit the policymaking abilities of local lawmakers.
While the D.C. Taxing Authority Review Act successfully cleared the House Oversight Committee, its passage through the Senate remains far from certain.
The Source: This information is from FOX 5 DC reporting.