Tax Relief for DC Residents: Ending Taxation Without Representation?
This bill aims to exempt residents of the District of Columbia from federal income tax, similar to residents of U.S. territories. This means if you live in D.C., you might stop paying federal income tax on income earned there, potentially increasing your disposable income. These changes would apply to tax years ending after the bill becomes law.
Key points
Residents of the District of Columbia may be exempt from federal income tax on income earned within D.C.
The change aims to align D.C.'s tax status with U.S. territories that have limited congressional representation.
Individuals who are bona fide residents of D.C. for the entire taxable year would not pay federal tax on D.C.-sourced income.
Expired
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