Mayor Williams’ Revenue Proposals

The Mayor’s FY 2000 budget proposes nine changes in the DC tax code to restructure business taxes.
The changes are targeted on small firms and economically disadvantaged areas. The District government
estimates that the changes would cost about $82 million annually in lost revenues when fully
implemented and would close 10 percent of the gap that exists between business tax burdens in the
District and surrounding jurisdictions. The proposals would reduce an estimated 90,000 business tax
filings with the District government.

This paper summarizes the proposals, compares them to current law, and discusses issues they
raise, then presents their effect on several ìrepresentative firms.