Subjects, with exceptions, every nonresident individual employed in the District to a tax equal to two percent of wages from such employment and two percent of net earnings from self-employment, so long as there is a corresponding Federal credit.
Amends the Internal Revenue Code (relating to determination of tax liability) to allow a credit against the imposed tax in an amount equal to the amount withheld at source under this Act. Prohibits a tax deduction for such tax credit.
Requires the Secretary of the Treasury, to the maximum extent practicable, to administer the tax credit in a way which provides its benefit without any requirement to claim the credit on the taxpayer's return.