Accountancy Slice

North America

The House Oversight Committee has advanced Republican legislation that would require Congress to approve any new taxes or tax increases enacted by the District of Columbia before they could take effect. The DC Taxing Authority Review Act would reverse the current process established under the 1973 Home Rule Act, replacing automatic implementation with a requirement for congressional approval within 60 days. Republican lawmakers said the bill is intended to prevent what they describe as excessive tax proposals from District leaders, citing recent discussions of a business activity tax, a proposed 3% tax on passive income, and a new fee on third-party delivery services. Democrats opposed the measure, arguing it would undermine the District's authority to govern its own affairs and interfere with decisions made by locally elected officials. The proposal is the latest in a series of congressional efforts to increase oversight of the District's fiscal policies as Washington, D.C., confronts budget pressures. Mayor Muriel Bowser said the measure would hinder the city's economic recovery, while Delegate Eleanor Holmes Norton argued it would reduce the DC Council's role in setting local tax policy. The bill now moves to the House floor for consideration.