Wealth Proceeds Tax Amendment Act of 2026

The Wealth Proceeds Tax Amendment Act of 2026 proposes a new 3 percent surcharge on passive income, such as capital gains, dividends, and interest, for high-income District of Columbia residents. This tax would apply to individuals earning over $400,000 annually and married couples earning over $500,000, targeting wealth generated without active labor. The legislation amends the local tax code to create a permanent provision for this surcharge, which is estimated to raise hundreds of millions of dollars for the city's general fund. By taxing unearned income from investments, the bill aims to broaden the tax base and reduce reliance on funding cuts to essential services like housing and healthcare.