There’s still time to nominate local icons for Best of D.C.
When seven D.C. councilmembers stopped an automatic property tax increase, saying that to raise taxes would drive out businesses and residents, Mayor Marion Barry berated them. But last week the mayor’s finance experts refused to endorse a council resolution to ask Congress to repeal tax exemptions for Fannie Mae, Freddie Mac, and Sallie Mae. Lorraine Britton, acting director of the Department of Finance and Revenue, testified that repealing the congressional exemption would provide the loan agencies “incentive to relocate from the District to a jurisdiction with a lower corporation franchise tax rate or no corporation franchise tax.” During fiscal ’94, Fannie Mae would have paid $300 million in corporate franchise taxes; potential revenue from the other two organizations is unknown. Meanwhile, Council Chairman Dave Clarke has forced another vote on the $40 million property tax increase.