"While the federal government has adjusted exemption and deduction rates every year according to inflation, the District uses dollar amounts established 18 years ago," Catania commented. "We must take swift action to correct this imbalance and provide meaningful tax relief to countless District residents."

Since 1987, the standard deduction in the District has been fixed at $2,000, and at $1,000 for married couples filing separately. The federal standard deduction began adjusting annually to account for inflation in 1989. That figure will increase from 2004's $4,850 for a single filer and $9,700 for joint filers to $5,000 and $10,000, in 2005.

Legislation established the District's personal exemption at a fixed dollar amount in 1987 ($885). Since it was increased to $1,370 in 1991, the amount has not been altered. Meanwhile, the federal government's personal exemption automatically increases each year based on an adjustment for inflation. That amount was $3,100 for 2004 and is $3200 for 2005 and will likely continue to increase while the District's personal exemption remains the same.

Service Employees International Union representative Martin Thomas praised the objective of Catania's bill saying, "A tax break of this size could be the difference for our members making the rent or in sending their kids to the doctor. It could mean a night off from a second or even third part-time job to spend time with their family."

For more information, please contact the Office of Councilmember David Catania by calling 202-724-7772.

Select quotes on Bill 16-35, "Standard Deduction and Personal Exemption Coupling Act of 2005":

"It [Catania's bill] would reduce taxes most notably for lower-income households, while providing some relief to all households because all households claim the personal deduction," Ed Lazere, Executive Director, D.C. Fiscal Policy Institute.

"This change would have a progressive impact on D.C. taxes," Matthew Gardner, State Tax Policy Director, Institute on Taxation and Economic Policy.

"This bill, in coupling the standard deduction and personal exemption to that of the Internal Revenue Service, assures that the annual adjustments for inflation will provide tax relief comparable to that now provided for Federal taxpayers," Frances Gemmill, President, League of Women Voters of the District of Columbia.

"Increasing standard deduction and exemption amounts is a way to reduce the 'creep' in the real costs of the income tax," Julia Friedman, Deputy Chief Financial Officer, Office of Revenue Analysis.

"A more progressive D.C. tax burden is long overdue," David Schwartzman, Tax & Budget Coordinator, D.C. Statehood Green Party.

"I welcome this bill because it proposes relief that is fair to all levels of taxpayers," Janet Welsh Brown, Washington Regional Network for Livable Communities.

"The disparity between the standard deduction and personal exemption amounts for D.C. income tax purposes and those under the Federal tax code should not be allowed to continue," Robert Pohlman, former member, D.C. Tax Revision Commission.