The Council passed the Budget Support Act (BSA) twice, as required by law: by a vote of 13-0 on May 28 and by a vote of 12-1 on June 24. That legislation included a progressive package of tax reforms for both individuals and businesses. Subsequently, the Mayor vetoed an emergency version of the BSA. On Monday, July 14, the Council will consider an override of the Mayor’s veto, which would require the votes of at least nine Councilmembers.
If the veto is overriden, you will receive the tax savings outlined below. If the veto is not overriden, the tax savings outlined in the chart below will never occur.
How much can your family expect to save each year, once the tax cuts are fully implemented? The chart below will show you.
*New average tax amounts are based upon full implementation of the tax changes. Some tax relief will take immediate effect on January 1, 2015, including a new individual income tax middle bracket, an increased standard deduction, and an expanded earned income tax credit. Beginning January 1, 2016, additional tax relief will be triggered based on revenue growth realized after each fiscal year’s budget is approved. Full implementation of all tax reforms is expected in the next 3 to 5 years.