Board of Trade Opposes DC Council’s Proposed Wealth Proceeds Tax
About This Letter:
The Board of Trade joined several regional business organizations in urging the DC Council to oppose the proposed Wealth Proceeds Tax. The letter argues that adding a new tax on investment income would weaken the District’s economic competitiveness at a time of slowing population growth, office vacancies, federal workforce uncertainty, and increasing competition from neighboring jurisdictions.
The letter also warns that the proposal would increase reliance on a narrow and volatile tax base without addressing the District’s underlying budget challenges. Instead, the coalition encourages the Council to pursue policies that support investment, entrepreneurship, housing production, business formation, job creation, and long-term fiscal sustainability.
Submitted Letter:
June 18, 2026
Dear Councilmember,
We write to urge you to oppose the proposed Wealth Proceeds Tax currently under consideration by the DC Council. The proposal would impose a new tax on capital gains, dividends, interest, rental income, royalties, annuities, and other investment income for individuals earning more than $200,000 and joint filers earning more than $250,000.
At a time when the District faces slowing population growth, persistent office vacancies, uncertainty surrounding the federal workforce, and increasing competition from neighboring jurisdictions for residents, employers, and investment, this proposal moves DC in the wrong direction.
1. The tax would weaken DC’s economic competitiveness.
The taxpayers affected by this proposal are often entrepreneurs, housing providers, business owners, and investors whose capital helps finance housing, commercial development, business expansion, and job creation throughout the District.
In a regional economy where people and businesses can relocate only a few miles and cross jurisdictional boundaries, incentives matter. Policies that make investment less attractive reduce the flow of capital that fuels growth, expands the tax base, and creates opportunity for District residents.
2. The proposal increases reliance on a narrow and volatile tax base.
A relatively small share of taxpayers already contributes a disproportionate share of District income tax revenues. Concentrating more of the District’s revenue structure on this group increases long-term fiscal risk.
Investment income is also among the most volatile sources of tax revenue. Capital gains and similar income rise during strong economic periods and decline sharply during downturns. The District should not rely on unpredictable revenue streams to support spending commitments.
3. The proposal does not solve the underlying budget challenge.
The District’s fiscal challenge is not simply a revenue problem. Spending growth continues to place increasing pressure on the budget, and a new tax is unlikely to resolve those structural issues. Without broader reforms, the District may face similar fiscal pressures in the years ahead.
The District faces a choice.
Every resident wants strong schools, safe neighborhoods, affordable housing, effective public services, and pathways to economic opportunity. A thriving economy is not an alternative to those goals—it is what makes them possible. The District can pursue policies that encourage investment, entrepreneurship, housing production, business formation, and job creation, broadening the tax base and generating sustainable revenue growth. Or it can continue increasing taxes on the individuals and businesses that drive economic activity.
For these reasons, we respectfully urge you to oppose the proposed Wealth Proceeds Tax and instead support policies that strengthen economic growth, expand opportunity, and place the District on a more sustainable fiscal path.
Respectfully,
Anthony Williams, CEO & Executive Director
Federal City Council
Jack McDougle, President & CEO
Greater Washington Board of Trade
Chinyere Hubbard, President & CEO
DC Chamber of Commerce
Lisa Mallory, President & CEO
Apartment & Office Building Association of Metropolitan Washington
Shawn Townsend, President & CEO
Restaurant Association of Metropolitan Washington
Malcom Fox, Executive Director
Opportunity DC
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