The Nation’s Capital Wrestles With Overhauling Its Tax System

The week in state tax news: The District of Columbia’s effort for a major remake of its tax code was just released and already is back to the drawing board after loss of support for a major business tax proposal. Meanwhile, Washington state’s capital gains tax survives after the US Supreme Court declined to review it, a working group is studying state models for taxing complex tiered partnerships, and several governors pitch tax measures as legislative seasons open.

As it turns out, overhauling Washington, D.C.’s tax code is much harder than the DC Tax Revision Commission might have thought. After ...