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Author Marks, Alexander Fairfax ♦ Kockelman, Kara M.
Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Cordon Charge District Columbia ♦ Commuter Tax ♦ Federal Policy ♦ Income Tax ♦ Structural Fiscal Imbalance ♦ Non-residents Visitor ♦ Many Worker ♦ U Use ♦ Per-vehicle Cordon Charge ♦ High Number ♦ Dc Cannot ♦ Local Governance Cost ♦ Revenue Problem ♦ Costly City Service ♦ Non-resident Worker ♦ Substantial Remuneration ♦ Income Tax Rate
Abstract This paper investigates a solution to an existing federal policy which prohibits the District of Columbia (DC) from imposing commuter taxes on non-residents, a tool which other cities in the US use to address revenue problems associated with high numbers of non-resident workers. DC, which has higher local governance costs per capita than its surrounding suburbs, must impose higher income tax rates to balance its budgets. However, because DC cannot legally levy a commuter tax under existing federal policy, many workers in the region currently “escape ” taxation: as residents of the surrounding suburbs, they pay substantially lower income taxes. Non-residents account for more than 70 % of DC’s workforce. These workers enjoy costly city services without any substantial remuneration to DC. This scenario has resulted not only in a structural fiscal imbalance for DC, but also one of the highest levels of congestion of any region in the US. A per-vehicle cordon charge may be the answer, internalizing the costs to DC for providing services to non-residents visitors by collecting revenues for the services it provides, while reducing congestion.
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Learning Resource Type Article