{"id":2612035,"date":"2026-06-08T14:13:02","date_gmt":"2026-06-08T18:13:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dc-council-proposes-extensive-decoupling-of-trump-tax-cuts\/"},"modified":"2026-06-08T14:17:03","modified_gmt":"2026-06-08T18:17:03","slug":"dc-council-proposes-extensive-decoupling-of-trump-tax-cuts","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dc-council-proposes-extensive-decoupling-of-trump-tax-cuts\/","title":{"rendered":"DC Council proposes extensive &#8216;decoupling&#8217; of Trump tax cuts"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fdc-council-proposes-extensive-decoupling-of-trump-tax-cuts%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2612035&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>D.C. Council Chairman Phil Mendelson has returned budget recommendations that go further in separating (or \u201cdecoupling\u201d) the District\u2019s local tax code from President Donald Trump\u2019s nationwide tax cuts. After D.C. <a href=\"https:\/\/amzn.to\/3YuVZYV\" >approved emergency decoupling legislation<\/a> in late 2025-projected to save hundreds of millions over the following years-Mayor Muriel Bowser\u2019s earlier fiscal 2027 proposal codified and extended parts of that effort. Mendelson\u2019s plan expands it further by recognizing additional decoupling revenue for FY 2026 (estimated at $273.8 million) and extending decoupling tied to specific provisions that affect deductions and business tax rules, among others.  <\/p>\n<p>Mendelson says the committee\u2019s decoupling proposals would add about $463.6 million across the financial plan, helping restore more than $400 million of funding that Bowser had cut. He also cites using $150 million in reserves and $40 million from closing a tax loophole, while clarifying that the decoupling would not eliminate certain federal tax benefits for residents (including items like overtime, tips, seniors\u2019 provisions, and car loans). mendelson opposes tax increases and is considering a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-says-american-public-not-interested-in-house-gop-hunter-probes\/\" title=\"Biden Says American Public Not Interested in House GOP Hunter Probes\">future public hearing<\/a> on potential revenue ideas.  <\/p>\n<p>The restored money would be directed toward priorities such as $300 million for the Stadium-Armory Metro Station, restoring and expanding paid family and medical leave, and ending Bowser\u2019s childcare subsidy waitlist. The D.C. Council is set to discuss the proposals Tuesday, with a vote scheduled for June 23.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<article class=\"fn-body\">\n<p class=\"wp-block-paragraph\"><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/washington-dc\/\" type=\"post_tag\" id=\"260\">Washington, D.C.<\/a>, Council Chairman Phil Mendelson returned his budget recommendations on Monday with a proposal that cuts deeper into separating the district\u2019s local taxes from President <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/donald-trump\/\" type=\"post_tag\" id=\"4\">Donald Trump<\/a>\u2018s nationwide tax cuts.<\/p>\n<p class=\"wp-block-paragraph\">In late 2025, after Trump signed his One Big Beautiful Bill Act\u2019s sweeping tax cuts into law, the district approved <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/lims.dccouncil.gov\/Legislation\/PR26-0380\">emergency legislation<\/a> allowing D.C. authorities to \u201cdecouple\u201d the district\u2019s tax code from the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/zoom-profits-in-2020-660-million-zoom-tax-payment-in-2021-0\/\" title=\"Zoom Profits in 2020: 0 Million. Zoom Tax Payment In 2021: federal tax code.\">federal tax code<\/a>. The district\u2019s financial officials <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/economy\/3878351\/dc-passes-first-local-child-tax-credit-us-history\/\">estimated that the move<\/a> would save the district\u2019s government nearly $100 million by the end of fiscal 2025 and nearly $660 million by the end of fiscal 2029.<\/p>\n<section class=\"explore-more-section\" id=\"wex-recommended-widget\">\n<div class=\"magazine-container single\">\n<h1 class=\"magazine-title mt-2\">Recommended Stories<\/h1>\n<p>             <i class=\"fa-solid fa-play icon\"><\/i>         <\/div>\n<div class=\"explore-grid\">\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/4598778\/trump-calls-la-mayor-race-rigged-election-spencer-pratt-falls-final-votes-counted\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Trump calls LA mayor race a \u2018rigged election\u2019 after Spencer Pratt falls behind as final votes are counted<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/state\/4597198\/maine-gop-primary-jonathan-bush-maga\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>Can a Bush Republican still win? Maine Governor\u2019s race Tests MAGA\u2019s grip<\/h3>\n<p>                         <\/a>                     <\/div>\n<div class=\"explore-card\">                         <a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/state\/4596895\/what-is-ranked-choice-voting\/?itm_source=parsely-api\">                             <\/p>\n<div class=\"explore-thumb-wrap\">                                                                                                                                  <\/div>\n<h3>What is ranked choice voting?<\/h3>\n<p>                         <\/a>                     <\/div>\n<\/p><\/div>\n<\/section>\n<p class=\"wp-block-paragraph\">When Mayor Muriel Bowser <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/crime\/4524182\/bowser-plan-build-new-jail-rehabilitate-youth-budget-proposal\/\">unveiled<\/a> her fiscal 2027 budget proposal in April, she codified the decoupling changes for 2025 and decoupled certain provisions for fiscal years 2026 and 2027. However, Mendelson\u2019s recommendations cut deeper and further decouple the federal tax cut proposals from the D.C. tax code.<\/p>\n<div class=\"article-paywall\">\n<p class=\"wp-block-paragraph\">\u201cThe Committee expands the Mayor\u2019s proposal in two ways. First, the Committee includes language that will allow the Council to recognize the decoupling revenue for FY 2026, revenue created by the original December 2025 legislation but that was not included in the February 2026 revenue estimates or the Mayor\u2019s budget proposal,\u201d Mendelson wrote in the budget <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/lims.dccouncil.gov\/Hearings\/hearings\/2354\">report<\/a>. He estimates that this first expansion added $273.8 million in revenue for fiscal 2026.<\/p>\n<p class=\"wp-block-paragraph\">The second expansion of the decoupling relates to the OBBBA\u2019s provisions on standard deductions, limitations on charitable contributions, increases in the amount of deductible business interest expenses, increases in business depreciation, and the expensing of domestic research, per Mendelson\u2019s proposal. As Bowser only temporarily decoupled these provisions, he proposed extending the decoupling either through 2029 or 2027.<\/p>\n<p class=\"wp-block-paragraph\">\u201cTogether, all of the Committee\u2019s decoupling proposals add $463.6 million across the Financial Plan,\u201d Mendelson wrote in the budget report.<\/p>\n<p class=\"wp-block-paragraph\">Mendelson said the tax plan decoupling extension is the largest source of the council\u2019s over $400 million in restored budget funding that Bowser had cut from her plan in April. He is also using $150 million in reserves and $40 million from closing a tax loophole.<\/p>\n<p class=\"wp-block-paragraph\">However, the council chairman\u2019s recommendations do not entirely strip the federal tax cuts from the D.C. tax code; it leaves some popular cuts in place. Mendelson clarified at a press conference on Monday that the decoupling in the fiscal 2027 budget \u201cdoes not affect overtime, tips, seniors, or car loans.\u201d<\/p>\n<p class=\"wp-block-paragraph\">\u201cGoing forward, all of those will be the benefit of the federal cuts on a local level,\u201d Mendelson said, referring to the above popular tax cuts from Trump\u2019s OBBBA.<\/p>\n<p class=\"wp-block-paragraph\">Mendelson avoided proposing a tax increase and said he would oppose any council amendment that would add one. He said he is thinking of holding a \u201chearing on revenue ideas\u201d in September or October to receive expert opinions on the idea of tax increases instead.<\/p>\n<p class=\"wp-block-paragraph\"><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/crime\/4591567\/bowser-calls-out-janeese-lewis-george-teen-curfew\/\">BOWSER CALLS OUT MAYORAL HOPEFUL JANEESE LEWIS GEORGE FOR GAP IN TEEN CURFEW ENFORCEMENT<\/a><\/strong><\/p>\n<p class=\"wp-block-paragraph\">In terms of what Mendelson proposes the D.C. government uses its budget and the restored revenue for, he highlights allocating $300 million for the Stadium-Armory Metro Station near RFK Stadium in light of the plans for the new facility, restoring and expanding paid family and medical leave despite Bowser\u2019s proposed pause, and eliminating Bowser\u2019s proposed waitlist for the childcare subsidy program.<\/p>\n<p class=\"wp-block-paragraph\">The <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/d-c-council\/\" type=\"post_tag\" id=\"1103\">D.C. Council <\/a>will meet on Tuesday to discuss Mendelson\u2019s proposals, with the next vote scheduled for June 23. <\/p>\n<\/div>\n<\/article>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Washington, D.C. Council Chairman Phil Mendelson proposes deeper decoupling from Trump\u2019s national tax cuts<\/p>\n","protected":false},"author":3976,"featured_media":2612036,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/07\/mendelson.webp?w=696","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[55238,32319,35281,37525,32405],"class_list":["post-2612035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-decoupling","tag-donald-trump","tag-policy-proposal","tag-tax-cuts","tag-united-states"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/07\/mendelson.webp?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2612035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3976"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2612035"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2612035\/revisions"}],"predecessor-version":[{"id":2612039,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2612035\/revisions\/2612039"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2612036"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2612035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2612035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2612035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}