Prohibit a D.C. tax law?
This joint resolution disapproves of and would prohibit the enactment of the D.C. Income and Franchise Tax Conformity and Revision Temporary Amendment Act of 2025, which decouples the D.C. tax code from specific federal tax provisions and business-interest tax deductions. Sponsor: Rep. Brandon Gill (Republican, Texas, District 26)
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Opponents say
• "D.C. is hardly an outlier in decoupling parts of its local tax code from the federal one. Nearly half the states, red and blue alike, have decoupled their states’ tax codes from portions of the federal tax code. Congress has never overturned a revenue-raising law for D.C. Doing so now would threaten D.C.’s credit rating, sow chaos in the middle of tax filing season, and will likely force the District to halt filings while scrambling to rewrite forms and guidance. This is not governance or oversight. It is sabotage, and the damage would be severe and intentional. This resolution doesn’t merely target the District’s government or its adult taxpayers. It would wipe out D.C.’s child tax credit, a policy projected to cut child poverty by 20%." Source: Rep. Eleanor Holmes Norton (Democrat, Washington D.C.)
• "Congressional Republicans, who last year barred the District of Columbia from spending $1 billion of its own revenue in its 2025 budget, are now moving to block another D.C. law. This action poses risks to D.C.’s public services and credit rating, and could create tax filing chaos for families and businesses just as tax season begins. Congress should respect D.C.’s decision-making and allow this law to stand, rejecting calls by some to override the judgment of D.C.’s elected officials." Source: Center on Budget and Policy Priorities
Proponents say
• "This legislation would decouple the D.C. local tax code from specific federal tax-related provisions – such as no tax on tips, no tax on overtime, the increased standard deduction, and more – implemented through the Working Families Tax Cuts (WFTC) for the 2025 tax year. That means D.C. families and businesses would not be able to experience the full benefits of the WFTC under the local tax code. The WFTC included historic tax reforms to relieve burdens on businesses, workers, families, and the elderly. So why would the D.C. Council oppose these provisions? It’s simple: the District doesn’t want to help working families." Source: Rep. Steve Scalise (Republican, Louisiana, District 1), Majority Leader of the U.S. House of Representatives
• "The D.C. Council is unnecessarily increasing complexity while imposing higher tax burdens on the very businesses that support job creation and economic vitality. This includes provisions that allow small businesses to immediately expense research and development, fully deduct certain capital investments, expand access to capital opportunities tied to small business stock, and various provisions that directly benefit workers such as the increased standard deduction, no tax and tips and overtime, and no tax on social security. H.J.Res. 142 ensures District residents receive the same beneficial tax relief and incentives available to small businesses and individuals across the United States." Source: Small Business & Entrepreneurship Council
- Republicans Seek to Block DC Move to Decouple from 2025 Tax Law (Bloomberg Tax)
- D.C. Income and Franchise Tax Conformity and Revision Emergency Amendment Act of 2025 (Council of the District of Columbia)
- What Does the One Big Beautiful Bill Cost? (Bipartisan Policy Center)
- Rep. Brandon Gill’s Largest Donors (OpenSecrets)
