Slumping economy freezes D.C. income tax cut.

• Position: News Briefs - Brief Article

The third phase of the District of Columbia's tax reduction effort was stalled in late January when the Congressional Budget Office projected weak growth in the gross domestic product through the end of the year. Although the district's economy is relatively strong, the five-year tax rollback plan is tied to the performance of the national economy as a hedge against future declines in revenues. The interruption of the tax cut is expected to save the district $35 million. Passed in 1999, the Tax Parity Act was intended to bring the...