The DC Fiscal Policy Institute has been blogging on proposed tax breaks for select commercial interests.
First came a posting on proposed tax abatements for six new projects. These include a luxury hotel in Foggy Bottom and two developments at Metro stations–all prime real estate and potentially very profitable. DCFPI estimates lost revenues at $3.3 million in FY 2010 and $13.7 million through FY 2013.
Now comes a posting on a bill to substitute a modest lump sum payment for the taxes the Union Station retail center pays. This one gives away an estimated $2.45 million a year.
I’m simply appalled. Here’s a City Council that:
- Just congratulated itself for closing an $800 million budget gap while modestly increasing funding for a handful of programs that serve low-income people.
- But couldn’t find enough funds for TANF benefits to even keep them level with inflation.
- Couldn’t find enough funds for the Local Rent Supplement Program to support the development of more than 180 affordable housing units.
- Virtually ignored the dire straits of the Housing Production Trust Fund–another key source of funding for affordable housing construction and renovation.
- Is well aware that the upcoming revised revenue forecast may reveal a new budget gap.
And yet some Councilmembers are proposing bills that would reduce District revenues. If they really think we’ve got money to spare, then why not use it to shore up programs that help our most vulnerable families meet basic needs?
Doing that would make the city a better place for all of us. Tax breaks for retailers at Union State won’t.