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Modest D.C. tax revision plan only a small remedy

Will D.C. Council and Mayor Gray fail to embrace tax reform, relief?

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money, tax revision, gay news, Washington Blade
money, tax revision, gay news, Washington Blade

A first step in reducing D.C. business and personal tax rates is long overdue, if inadequate, and is deserving of support – and does offer enterprise a modicum of relief. (Photo by iStock)

Following nearly a year-and-a-half of deliberations and almost 30 public hearings, the D.C. Tax Revision Commission last week issued preliminarily detailed city revenue reform recommendations unanimously adopted for approval by D.C. Council members and Mayor Gray. A full report is scheduled for early January.

While disappointing in its modest magnitude — particularly in mitigating the negative business taxation environment and D.C. anti-enterprise reputation — the proposed reforms offer some improvement.

The compromise plan represents a mere $48.8 million in net revenue reductions out of local tax collections in excess of $6 billion. Mayor Gray’s initiative earlier this year, approved by the Council, setting aside $18 million in the current budget toward underwriting tax revisions slashes the bottom-line cost to $30.8 million, less upwardly revised tax collections.

In fact, outgoing District CFO Natwar Gandhi issued his final projections last week indicating $19.8 million in additional revenue this fiscal year and an estimated $42.7 million surplus the next.

Any tax modifications would be incorporated in the District’s FY2015 budget, effective beginning next October. The narrowed list of proposals, whittled down due to lack of agreement among commissioners, are designed to “provide for fairness in apportionment of taxes, broaden the tax base, make the District’s tax policy more competitive with surrounding jurisdictions, encourage business growth and job creation, and modernize, simplify, and increase transparency in the District’s tax code.”

Former Mayor Anthony Williams, credited with restoring D.C.’s fiscal footing during two terms in office ending January 2007, chaired 10 appointed tax policy experts, business community representatives and advocates from liberal policy groups. Divergent perspectives culled an initial 63 recommendations to only about a dozen measures comprising a balanced plan thought within the realm of political viability.

Unfortunately, these consensus recommendations are expected to encounter opposition by politicians longing for more money to toss around in an election year. Frustrated by spending constraints requiring expenditure prioritization, Council members have taken to creating an annual budget “wish list” well in excess of potential revenue surpluses to pay for them.

Williams was quoted last week as saying, “to be the competitive city we want to be, we’ve got to have government within the proper bounds in terms of the private-public sector relationship, and I don’t think we’re really cognizant of that.” In other words, officials still don’t “get” it.

While the Commission proposes to reduce the business franchise tax from an astounding 9.975 percent of net income to 8.25 percent, this merely matches high-tax Maryland. While arguing that cutting the tax is “a signal that D.C. is ‘open for business’,” it doesn’t lower it to be competitive with Virginia’s 6 percent rate. D.C. business taxes are worst in the region and among the highest nationwide and this proposal is an inadequate remedy.

Worse, a reduction in business taxes is partially offset by levy of a local services fee to be imposed on all employers – including non-profits and other tax-exempt entities – by assessing a quarterly payment of $25 per employee for those with more than four. While the intent to generate revenue from tax-exempt organizations not currently contributing to city service benefits is a good thing, it diminishes the lessening of the business tax burden.

In addition, instead of preserving the general sales tax rate when expanding taxable businesses to include those currently exempt – such as hair salons, health clubs, bowling alleys, carwashes, construction and carpentry contractors, upholstery cleaners and storage facilities – the current 5.75 percent rate is recommended for return to 6 percent.

And while the vast majority of revenue reductions, totaling nearly $100 million, originate from a laudable cut in the income tax rate for low and middle-income earners by adding new tax brackets, the existing too-high rates for taxpayers earning more are untouched.

A first step in reducing D.C. business and personal tax rates is long overdue, if inadequate, and is deserving of support – and does offer enterprise a modicum of relief.

At least it’s a start.

Mark Lee is a long-time entrepreneur and community business advocate. Follow on Twitter: @MarkLeeDC. Reach him at [email protected].

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Commentary

Washington Blade responds to concerns over White House pool duties

Inaccurate media reports create confusion but we stand with our colleagues

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A photo from inside the White House on Monday. (Washington Blade photo by Joe Reberkenny)

Last week, President Trump announced his unconstitutional ban of CNN, MSNow, and Politico from the White House. Coincidentally, on Monday, it was the Washington Blade’s turn to serve as the print pool reporter on duty covering the president’s actions that day. This important responsibility is shared and rotated among the print members with each serving roughly once per month. The Blade is the only LGBTQ outlet with a seat in the briefing room, a slot in the pool rotation, and membership in the White House Correspondents’ Association, something we fought for decades to secure after enduring years of discrimination, ridicule, and resistance to openly queer journalists working inside the White House. We take our responsibilities there seriously. 

There are two pools that cover the president: broadcast and print. The other four members of the broadcast pool — ABC, CBS, NBC, and Fox News — agreed to boycott their pool duties. There has been no boycott among the print pool, which is a separate entity. I called the president of the White House Correspondents’ Association on Monday to confirm that no outlets in the print pool were boycotting. 

A boycott by the Blade would set us back and lead to our expulsion from the pool and briefing room and our replacement by a right-wing outlet sympathetic to President Trump’s approach to attacking the media. The LGBTQ community is far better served with the Blade in the room than a far-right blogger taking our seat.

Let’s be clear: the Blade stands for diversity, equity, and inclusion and we stand for the First Amendment and freedom of the press. In solidarity with the broadcast pool, we made two important decisions on Monday — the first day anyone had to think about any of this. First, we refused to take or share any videos or still photos of the president, which would have undermined the broadcast boycott. Second, when Politico’s turn comes up for pool duty in mid-October, the Blade will not fill in and cover for them while they are banned. Politico must be readmitted and allowed to do their job. 

After a rough day navigating and reporting on all of this, the Advocate published a reckless and inaccurate story suggesting that the Blade had crossed a picket line. Not true, as there is no print pool boycott. They claimed that I wouldn’t talk to their reporter. Also not true. I called their reporter within 90 minutes of receiving his message and he didn’t take the call or call me back. Their story named me and our White House reporter, immediately exposing us to public criticism and worse. The environment in D.C. is so toxic and even violent these days that subjecting our staff to unfair and false accusations like this invites harassment, doxxing, and worse. To do that without even talking to us is next level irresponsible and the antithesis of journalism.

On Tuesday, I talked to two reporters and an editor at the Advocate but they refused to retract anything in their inaccurate story. If the reporter had returned my call, I could have explained all of this but they are more concerned with clickbait and sensational headlines, a dangerous practice in these troubled times. 

Back to the pool. The Blade was in the briefing room in the Reagan era, when Press Secretary Larry Speakes made jokes about AIDS and the reporters in the room laughed out loud. We endured all of that abuse and worse for decades, always standing in the back of the room and never being called on. The Blade’s journalists persevered. When President George W. Bush was re-elected in 2004, the Blade’s White House credentials were revoked amid an earlier press crackdown. Notably, no one boycotted or stood up for us. When Barack Obama won election in 2008, I received an email from his communications director informing me that effective midnight on Jan. 20, 2009, the Blade’s credentials would be restored. 

So we have had quite a ride navigating administrations and their changing requirements for gaining access but always playing the long game. As Barney Frank used to say, “If you’re not at the table, then you’re probably on the menu.” The Blade is at the table and we do our best to ensure the LGBTQ community’s issues are addressed by both parties. 

Thanks for reading and supporting the Blade’s work. If you have questions about our approach, you can reach me at [email protected].  


Kevin Naff is editor of the Washington Blade. Reach him at [email protected].

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Opinions

Young people should know history of the fight for human rights

Trump is working to erase contributions of marginalized people

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From left, Rep. Bella Abzug (D-N.Y), Frank Kameny and Rep. Shirley Chisholm (D-N.Y.). (Photos of Abzug and Chisholm public domain; Washington Blade archive photo of Kameny)

When talking with otherwise really smart young people, I am amazed how little knowledge many of them have about the fight for human rights in the United States. Our country was founded by white men, who didn’t think about giving full rights to Black Americans, women, the LGBTQ community (what they knew of it, or called it). They wrote in the Declaration of Independence, “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.” But that referred to all white men, and intentionally didn’t mention women. For 250 years, the country has been trying to make up for that, and making progress in fits and starts. We have yet to fully succeed. Today the felon, and his fascist aides, in the White House, are working daily to take us backwards. 

For that reason alone, it is important for younger generations to understand the fight for human rights, know who was fighting for those rights, and understand it is an ongoing fight. Often, when listening to some millennials speak, one would think the world began with them. They either forgot, or never learned, about all those who fought for the rights they now have. I realize this was true for previous generations as well. In 2016 I co-hosted a fundraiser for Pete Buttigieg during his run for president. He is an undeniably brilliant guy. Yet when he spoke of marriage equality, he just thanked Justice Kennedy for it. I reminded him after he spoke, while it’s nice to thank Kennedy for his vote, it shouldn’t be done without acknowledging the many activists who worked for decades, to get to the point that allowed Kennedy to cast that vote. In the same way it was clear to me during the Hillary Clinton campaign for president, many young women didn’t understand the work many of their own mothers had done, to fight for their right to control their own healthcare, and women’s rights in general. They took for granted the rights they had. Now, after losing some of them, many will realize the fight for their rights is never-ending. 

When I speak to younger members of the LGBTQ community, I am amazed how many don’t know the history of the AIDS epidemic, many thinking it was always a disease you could deal with by taking medication. They don’t understand the work so many activists did to bring attention to this devastating disease, and get the healthcare so many needed. Those like Cleve Jones, Larry Kramer, Dr. Anthony Fauci, and so many others. Recently, I realized how many young women don’t know the names of Gloria Steinem, Betty Friedan, Shirley Chisholm, Bella Abzug — women who fought for their rights. And this is just recent history, no less knowing about the Suffragettes, the strong women who fought for their right to vote. I’ve met young women who don’t know what the ERA is, and others who think it passed. Many don’t know the nation couldn’t get 38 states to approve an amendment to include them in the Constitution. The same for young members of the LGBTQ community who don’t know what the Equality Act is. Others think it passed, and are shocked when told it didn’t and in 27 states, they can be married on Sunday, and kicked out of their home, and fired from their job, on Monday. They don’t know names like Frank Kameny, Harvey Milk, Barney Frank, or the history of the Mattachine Society, or the Stonewall Riots.

Our current president is trying to wipe out all this history, and reverse any progress that has been made. Knowing this, it makes it even more important for school systems across the nation to fight to educate our children. We should ensure no child can graduate high school, without taking a course called “The 250-year fight for human rights in the United States.” They need to understand the history, and learn about the people who fought for their rights. They need to know how far we have come in 250 years, and understand, as we begin the next 250, how far we still have to go, to ensure real, full equality, for all.


Peter Rosenstein is a longtime LGBTQ rights and Democratic Party activist.

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What LGBTQ veterans are building after ‘Don’t Ask, Don’t Tell’

DADT repeal took effect on Sept. 20, 2011. Trans servicemember ban reinstated

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The Pentagon (Photo by icholakov/Bigstock)

Fifteen years ago this month, the repeal of “Don’t Ask, Don’t Tell” took effect. At the time, the importance of the change was obvious: gay, lesbian, and bisexual Americans would no longer have to hide who they were to wear the uniform. What was harder to see was what would follow: a generation of LGBTQ veterans able to carry their service openly into American civic life.

Earlier this month, Alaska state Rep. Andrew Gray, an Army veteran, stood before the Anchorage Assembly and asked the city to recognize Sept. 20 as LGBTQ Veterans Day.

His former command sergeant major, Mike Grunst, followed him to the microphone. A 35-year veteran who had served in combat, Grunst called troops who had served while hiding who they were “the bravest I have ever served with.”

Then Denise Sudbeck stepped forward. A Vietnam-era Navy veteran, she thanked the country for the privilege of serving and asked that the next generation have the same chance.

The Assembly approved the recognition.

Nothing about the scene required a new vocabulary. A veteran made a request of his community. A commander vouched for those who served beside him. Another veteran asked that younger Americans inherit the opportunity she valued. They entered the civic record simply as veterans.

That identity can do more than win recognition.

When federal policy abruptly ended the careers of transgender servicemembers this year, veterans and servicemembers in California began asking a practical question: What happens when those Americans come home?

Republican Assemblyman Jeff Gonzalez, a Marine combat veteran, began one hearing with questions about transgender military service. He listened as veterans explained how the military handles medical care and deployment case by case.

Then the discussion turned to separation.

“I don’t wanna see any veteran homeless,” Gonzalez said. Before the hearing ended, he was asking: “How can I help? How can I understand? How can I be a good advocate?”

The legislation that followed would provide housing, employment and transition assistance to discharged servicemembers. Republican state Sen. Shannon Grove spoke for it. The Senate passed it 32 to 0.

Americans have plainly not settled their disagreements over transgender people. Nor should military service be a prerequisite for rights that belong to every citizen.

But military service creates relationships that are difficult to reduce to the abstractions of the culture war. Before a legislature, “the transgender issue” can become a veteran who deployed, an officer who led troops, or the person who once stood beside you.

The political question changes because the human relationship has already changed.

The pattern is beginning to appear across the country. Kansas is among the states recognizing LGBTQ Veterans Day for the first time this year. New York and Virginia are pursuing broader state-level programs for LGBTQ veterans.

Sept. 20 is deliberate. On that day in 2011, “Don’t Ask, Don’t Tell” ended.

We usually remember repeal for what LGBTQ Americans gained: the ability to serve openly. Fifteen years later, we can also see what the country gained.

A gay veteran can stand before his local government beside the commander who once led him. A transgender servicemember can sit before a legislator who begins with doubts and ends by asking how he can help. A veteran from an older generation can ask her neighbors to give those who follow her the same chance to serve.

This is citizenship in practice.

The enduring legacy of “Don’t Ask, Don’t Tell” repeal is not only that Americans were finally allowed to serve openly. It is also what they can now build after coming home.

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