DC Council Approves Tax Hikes

Post: Budget changes approved unanimously

WASHINGTON -- The D.C. Council unanimously approved budget changes that include hikes to the sales tax, gas tax and cigarette tax in an effort to reduce a projected $666 million budget shortfall over the next three years.

There was very little debate, The Washington Post reported.

The council agreed to raise the sales tax from 5.75 percent to 6 percent, the gas tax by 3.5 cents per gallon to 23.5 cents and the cigarette tax by 50 cents to $2.50 per pack, making it the sixth-highest in the country, according to the American Lung Association. The tax increases are expected to raise $50 million.

The council also endorsed more than $100 million in spending cuts, affecting summer school, police hiring and summer jobs for young people.

The council avoided dipping into the city's rainy-day fund.

The budget now goes to the mayor for approval.

Copyright AP - Associated Press
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