July 30,1998

Open Letter to District Law Firms and Accounting Firms:

I am writing to explain my tax elimination and reduction proposal that I recommended as Chief Financial Officer of the District and that I have talked about as a Democratic Candidate for Mayor. This proposal will result in most law firms and accounting firms receiving a net deduction in taxes paid to the city. This is an important point: most law firms and accounting firms  in the District of Columbia will pay fewer taxes, not more.

This proposal for a broad based gross receipt tax will only be implemented in conjunction with elimination and reduction of certain other taxes.

This tax elimination and reduction proposal, would:

• Eliminate the Personal Property Tax;
• Eliminate the Unincorporated Business Tax;
• Eliminate the Professional License Fee;
• Eliminate the Arena Tax;
• Reduce the Real Property Tax on commercial property;
• Reduce Franchise Tax on Corporations; and
• Reduce Gross Receipt Tax on Utilities and Telecommunications firms.

I understand the needs of businesses and how broken promises have adversely affected your ability to transact business. I understand that the government has overtaxed businesses and under delivered services. I understand that the businesses in the District have carried a heavy tax load. And I understand that taxes in the District must be reduced.

During my tenure as CFO, as well as during my candidacy, I have been focused on how we can make the District a more inviting place for businesses to locate. It is imperative that the government not hinder the activity of businesses. This proposal was presented as part of an overall tax reduction and elimination package. And I commit to you that I will not implement this or any other tax proposal unless it remains part of an overall tax elimination and reduction framework.

Sincerely,

Anthony A. Williams

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Printed In-House, Paid for by Williams for Mayor, Mane Drissel, Treasurer