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“For 134 years, Washington state has been waiting for the day when a fairer tax system came about, one where working people were not carrying an inequitable share of the burden. Today is that day. Washington’s capital gains tax helps right an upside-down tax structure where low-income Washingtonians ultimately expend a much larger share of their income in taxes than our wealthiest residents.
“It is gratifying as governor to join so many Washingtonians in this historic victory today, one that has been elusive in the face of years of opposition from powerful interests. I want to thank the court for their timeliness in considering this case, and all the legislators and advocates who spent nearly a decade working tirelessly on this policy to make our state fairer and more equitable.”
Additional background below and in our 2021 Medium piece on the bill:
- Low-income Washingtonians pay 17% of their income in taxes, while middle class individuals pay 11% and the wealthiest pay just 3%.
- The state Supreme Court’s decision to uphold this excise tax on extraordinary benefits puts Washington in the company of 41 other states and the District of Columbia with capital gains taxes.
- An estimated less than one-quarter of 1% of Washingtonians (0.23%) will pay the tax.
- The capital gains tax is estimated to bring in about $500 million annually that can be used to support education, early learning, child care and other investments that help working parents and families.
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