Endlessly challenged by the mix of its relatively progressive politics and a relatively paltry tax base, any shift in the mood around a statewide change in taxation is notable in Washington. Over the weekend, state senators narrowly approved a proposal that would tap into profits from massive stock and bond sales, sending the proposal onto Olympia’s Democrat-controlled House of Representatives.
The 25-24 vote moved the bill forward to create a 7% tax on the sale of stocks and bonds, personal property and businesses when annual profits exceed $250,000. Retirement accounts would be exempt.
“Our hardworking Washington families are ready for us to reform and rebuild our tax code,” primary bill sponsor Sen. June Robinson, a Democrat out of Everett, said, the AP reports. “They are asking for the wealthy few to be part of equitable investments in our state’s future.”
Washington state currently ranks 29th in the nation with a total 8.32% “tax burden” — boosted by 5.73% in sales and excise tax, the third highest total in the category in the nation. Meanwhile, it remains one of eight states without an income tax component, joined by Alaska, Wyoming, Florida, Texas, South Dakota, Nevada, and Tennessee. New Hampshire is set to become the 9th in 2024.
Washington’s tax burden ranking may be headed for change. Crosscut reports that progress on the capital gains tax joins a raft of tax proposals being pushed forward in Olympia as the state struggles with the costs of COVID-19 relief and recover, social programs, and education funding.
The capital gains tax proposal would start in 2022 and generate around $500 million a year. It now moves the state house.
THANKS! WE DID IT! 1,000 CHS SUBSCRIBERS -- We asked, you answered. Thanks for stepping up!
Support local journalism dedicated to your neighborhood. SUBSCRIBE HERE. Join to become a subscriber at $1/$5/$10 a month to help CHS provide community news with NO PAYWALL. You can also sign up for a one-time annual payment.