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My Edmonds News presents the Daily Legislative Report, covering the 2021 Washington State Legislature. The House Finance Committee heard public testimony on Engrossed Substitute Senate Bill 5096, which would create a state capital gains tax. The bill passed the Senate 25-24 on March 6, and would have to pass the House, into order to make it to the Governors’ office for his signature, to become law.
For more information on Senate Bill 5096 – https://app.leg.wa.gov/billsummaryBillNumber=5096&Year=2021&Initiative=false
For more complete information on any legislation, including sponsors, a synopsis, and fiscal note, visit the Washington State Legislature’s bill information webpage: https://apps.leg.wa.gov/billinfo
Please. No more taxes. Why can’t we balance a budget and spot the wasteful spending. In 2019 Despite historic revenue growth and a $2.8 billion budget surplus, they approved a $52.5 billion spending plan that will cost taxpayers $5.5 billion in tax increases over the next four years. These include:
a 20% B&O tax increase for certain services;
a progressive real estate excise tax (REET);
increased taxes on banks;
an increase in the hazardous substance tax; and
a tax increase on travel agents.
Please no more spending. No more taxing.
Capital gains, especially short term, are considered income. It is illegal for Washington state to tax income. Twenty five members of Congress just voted to break state law. Might be newsworthy, in a state with free media. At least challenge their thinking.
Hi Glen, The current proposal to tax capital gains is an interesting approach. Most would say capital gains, short and long term are indeed income. But taxing income in Washington is not illegal so long as it is taxed like property and taxed at a uniform rate. Same percent to low income people and and high income people. In the 30’s that was the ruling of the Washington Supreme Court. When the legislature brought a plan to tax different incomes at different levels then Attn General Slade Gordon again to the same position as the SC did in the 30’s. Ok to tax but not at different rates.
A couple of years ago when our Rob Ferguson spoke at an Edmonds event I ask during Q and A about “taxing income as property” and he did not answer directly but did assign his chief of staff to help with my questions. His staff did some research and confirmed the SC ruling, the Slade Gorton opinion and said ” the position of the AG office is the same as the opinion of Gorton. I had the opportunity to talk with our AG on two additional occasions. In both cases he did not counter his staffs position.
Check out the link below to read a bit more about the court ruling and how we could change the regressive nature of our current tax system but taxing income at a uniform rate.
https://www.seattletimes.com/author/dick-conway/
Yes it would be nice if our state legislature would follow the law. If they did so we could make our tax system less regressive.
Darrol,
Yes, it certainly is. And it seems there will be little discussion. I did read Gorton’s 1974 decision and would hope that isn’t the only case law being considered. Property, income and the issue of uniformity will likely be replaced by the language of equity. I have yet to see an income tax that was even close to flat, despite the claims. I fully expect the tax to be enacted, followed by a citizens initiative, voter suppression by the state, passage and overturning by the courts for addressing more than one issue. That would be the normal course of action. I can accept the decisions made by my fellow voters, even when I disagree. I wish our government could do the same.