44 44 Derivation of Total Personal Income in the District of Columbia Earnings consist of wage and salary disbursements, other labor income, and proprietors' income. Earnings of nonresidents working in the District less small amount of earnings by District residents working outside of the District. 2/ Source: Compiled by Brimmer & Company, Inc., from data in April, 1986, computer files of the Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce. Table II-15 Derivation of Total Personal Income in Maryland 1/ Earnings consist of wage and salary disbursements, other labor income, and proprietors' income. Amount of earnings by Maryland residents working outside of Maryland less earnings of nonresidents working in Maryland. Source: Compiled by Brimmer & Company, Inc., from data in April, 1986, computer files of the Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce. Earnings consist of wage and salary disbursements, other labor income, and proprietors' income, Source: Compiled by Brimmer & Company, Inc., from data in April, 1986, computer files of the Regional Economic 51 1984, these earnings of commuters accounted for 14.6 per cent of total net earnings of Maryland residents while in Virginia such earnings accounted for 6.7 per cent of net earnings by Virginia residents. In Maryland, these earnings of commuters amounted to over 10 per cent of Income in 1984, and in Virginia the total Personal proportion was Income. nearly 5 per cent of its total Personal The level and pattern of earnings by non-District residents should be kept in mind. Under legislation adopted by Congress, the District is not allowed to impose an income tax on such earnings. In contrast, all other states (and some cities) which tax income originating within their jurisdictions do tax earnings by out-of-state residents. If the District of Columbia were to become a state, it too could adopt a commuter tax. Such a move would generate a significant amount of tax revenue. Section III REVENUE SOURCES AND TAXATION IN THE DISTRICT OF COLUMBIA The purposes of this section are: (1) (2) (3) (4) (5) to assess the main sources of revenue for the District of Columbia, to identify the contributions of principal forms of taxation versus other revenue sources, to describe and evaluate differing growth rates among revenue sources in the past few years (Fiscal Years 1982-1986), to examine the outlook for different revenue sources (Fiscal Years 1986-1991), and to estimate possible contributions to revenue through taxation of the earnings of nonresidents working in the District of Columbia. Government of District of Columbia collects The from taxes, revenues fees, grants under Federal 52 |