Invest in DC: Progressive Taxation to Close the DC Budget Gap

In spring 2011, DC faced a budget shortfall of $322 million. The Invest in DC campaign fought for progressive taxes and other revenue to protect vital safety net programs that ensure our neighbors’ basic needs are met.

To close the budget gap and protect programs residents need, JUFJ joined with a coalition of groups from across the city to demand smart, responsible action from our city government. The progressive budget coalition proposed that DC commit to funding safety-net programs. To pay for these programs, we advocated raising taxes on the highest-income earners, who are least affected by the current economic recession.

JUFJ was a key partner in the progressive budget coalition. As a predominantly affluent group, we were able to articulate our investment in our city and commitment to pay fair taxes according to our means.

Ultimately, the Council replaced the progressive income tax we worked for with a new tax on bond investments, which affected the same high-earning group our income tax measure targeted. Thanks to the work of hundreds of our members and partners across the city, the above-and-beyond dedication of campaign co-chairs Ari Weisbard and Zach Teutsch, and a crucial push from JUFJ Community Organizer Dan Gordon, we won a major victory on May 25, 2011, when the DC Council passed a budget that restored tens of millions of dollars for critical services.

Background:

During the three years before the campaign, the District of Columbia cut more than $120 million in funding for services such as domestic violence resources, affordable housing, and childcare, services that help struggling low-income families and keep our communities secure and strong.

Meanwhile, DC's income tax structure is incredibly regressive: all income over $40,000/year was taxed at the same rate. That means that people earning $50K/year were taxed at the same rate as those who make millions. Even worse, fiscal year 2012's budget was estimated to have a $322 million deficit. We took action to ensure that the City Council did not balance the budget on the backs of our city's most vulnerable residents.

Campaign Highlights:

1. Invest in DC House Parties

JUFJ members hosted 13 house parties to spread awareness of DC's budget issues and to garner support for the proposed tax increase. Party hosts stressed their Jewish values as the reason why they thought DC's wealthiest citizens should have higher taxes so that vital programs could receive funding. Party attendees wrote letters to the DC Council and planned future outreach. By May 18th, 85% of DC residents said they supported a tax increase on income over $200,000/year.

2. Ward 3/Councilmember Cheh House Meeting

More than 60 people gathered in Cleveland Park on Sunday, May 22, 2011, for a house meeting and bagel brunch with Mary Cheh. Read Rabbi Gilah Langner's testimony hereWe asked Councilmember Cheh why she was opposing progressive taxes, and called her to account for being out of step with her constituents. She listened carefully to our concerns, even staying to talk with JUFJers one-on-one for half an hour after the official meeting ended.

Although Councilmember Cheh voted against the income tax increase after our meeting on May 25, our efforts and the poll showing 91% of her constituents supported the tax increase seemed to plant a seed for her to soften her anti-tax position. By the time of the budget confirmation vote on June 14, Councilwoman Cheh supported temporary income tax increases on D.C.'s wealthiest residents.

3. Ward 3 Budget Survey

If you took Ward 3 Councilmember Mary Cheh's budget survey, thank you! Forty-seven Ward 3 residents responded, making up nearly one-sixth of all replies Cheh received, and we sent all 73 of our replies to her office. Among JUFJ respondents, there was universal support for higher income taxes to close DC's budget gap, and universal opposition to cutting human-services programs. 

4. Media

On May 19, 2011, WAMU 88.5 aired commentary by JUFJ board member Rabbi Jessica Oleon of Temple Sinai in Northwest DC arguing for investment in DC and sharing her congregation's enthusiastic support for progressive taxes.

On May 18, 2011, the Washington Jewish Week ran a front-page article about Invest in DC, focusing on the pro-tax-increase house parties we organized.

On May 8, 2011, the Washington Post reported on a poll showing that residents wanted to pay taxes and protect safety-net programs.