Norton Calls Senate Passage of Disapproval Resolution to Overturn Local D.C. Tax Law “Both Unprecedented and Unsurprising”

Source: United States House of Representatives – Congresswoman Eleanor Holmes Norton (District of Columbia)

The Senate passed the resolution today.

WASHINGTON, D.C. – After Senate passage of a disapproval resolution to repeal a local D.C. law that recently restored D.C.’s child tax credit, increased an existing earned income tax credit, and decoupled D.C.’s tax code from certain provisions in the One Big Beautiful Bill Act (OBBBA), Congresswoman Eleanor Holmes Norton (D-DC) called the measure “deliberate, yet unsurprising, administrative and fiscal sabotage of the nation’s capital.” The Senate resolution was introduced by Senator Rick Scott (R-FL). 

When the resolution is signed into law by the president, it will repeal a local D.C. law that recently restored D.C.’s child tax credit, increased an existing earned income tax credit, and decoupled D.C.’s tax code from certain provisions in the One Big Beautiful Bill Act (OBBBA). The D.C. law’s decoupling provisions are projected to generate approximately $600 million in local revenue over the next four years and D.C.’s child tax credit is projected to reduce child poverty by 20%.

“This resolution is both unprecedented and unsurprising in the current Congress, which has attacked D.C. and home rule more frequently than any time since the 1990s,” Norton said. “This is deliberate administrative and fiscal sabotage of the nation’s capital. D.C. is hardly an outlier in decoupling parts of its local tax code from the federal tax code. Several states, red and blue, have decoupled parts of their tax codes from the OBBBA. Moreover, Congress has never overturned a revenue-raising law for D.C., and doing so now threatens D.C.’s credit rating and will inject chaos in the middle of tax filing season. The District’s Chief Financial Officer said it will force the District to halt filings while scrambling to rewrite forms and guidance. 

“What Congress has done is not governance or oversight. It is sabotage, and the damage will be severe and intentional.

“More than 700,000 residents of Washington, D.C., the majority of whom are Black and Brown, are worthy and capable of governing themselves. If D.C. residents disagree with the decisions of their elected council, D.C. residents can vote them out. That’s how democracy works. Members of Congress from distant states, who don’t live or pay taxes in D.C. and are not accountable to D.C. voters – and who often don’t even understand how D.C. functions – have no business overriding local laws and stripping District residents of their right to self-government. Free D.C.”

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