WASHINGTON, D.C. - D.C. Councilmember David Catania (I-At-Large) introduced legislation today that increases the personal exemption and standard deduction claimed by District taxpayers to the level established by the federal government. This change would give those who are most burdened by taxes significant relief.

"While the federal governments has adjusted exemption and deduction rates every year according to inflation, the District uses dollar amounts established more than 10 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). After being adjusted in 1991 to $1,370, 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.

Catania concluded, "Establishing these figures in law makes no sense. Every year, their value loses ground to inflation and thus fewer dollars are reclaimed by taxpayers, especially those filers who don't itemize deductions."