The D.C. Council is scheduled to take up major budget legislation on Tuesday, June 23, as advocates push lawmakers to consider a tax on wealthy residents’ investment income.
The proposal, known as a wealth proceeds tax, would target passive income such as capital gains and dividends. Supporters say the money could help protect safety-net programs as Black families and low-income residents face possible cuts.
Budget Vote Puts Pressure on Council
The Council’s budget calendar lists Tuesday for consideration of several Fiscal Year 2027 budget measures. Those include the local budget act, the federal portion budget request, and the budget support legislation.
The June 23 budget schedule has become a deadline for advocates seeking to raise new revenue rather than reduce public assistance. The debate centers on a simple question: should D.C. cut programs for struggling families, or ask wealthy residents with investment income to pay more?
Local advocacy groups say the city needs recurring funding to protect families from deeper harm. They argue that reserves and temporary fixes will not solve the budget problem.
Tax Would Hit Investment Income
The proposed tax would not apply to everything wealthy residents own. It would focus on income from wealth, including capital gains, dividends, and other passive income.
Supporters say that makes the idea more targeted than a broad wealth tax. It would focus on residents who earn income from investments, not on workers earning regular paychecks…