(Updated) FAQs: Taxing Capital Gains To Build An Economy That Works For All Washingtonians
Updated January 9, 2015. The document has been changed to reflect Governor Inslee's capital gains tax proposal. It also includes end notes and links to additional resources on capital gains.
By Andy Nicholas
This morning, Governor Inslee proposed a new excise tax on capital gains as part of a responsible approach to improving schools in Washington state without harming other investments kids need in order to succeed in the classroom, such as health care, child care, and opportunities to pursue higher education at a community college or university. Washingtonians will certainly have many questions about how this tax would work and who would pay it. Answers to a number of key questions are included in the “Frequently Asked Questions” document below.
(Click to view the full pdf document)
Governor Inslee proposes to tax capital gains in excess of $50,000 per year ($25,000 for singles) at a rate of 7 percent. Under his proposal, the tax would generate about $800 million per year in new resources and would be paid by less than 1 percent of Washingtonians.
This proposal would greatly improve Washington state’s flawed, 1930s-era tax system while providing much needed resources for schools and other investments that help create jobs and build a strong economy.