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Updated! FAQs About Taxing Capital Gains In Washington State

Posted by Andy Nicholas at Jan 12, 2015 01:30 PM |

Updated February 10, 2015 to include a question/answer section about gifts of stock to charities and formatting adjustments.

Updated January 12, 2015. The document below 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 taxes.

In December 2014, 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 on the image below to view the full document)

Cap_gains_FAQ 

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.

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HIGHLIGHTS

Our Seattle Policy Summit

You can watch our Budget Matters 2017 Seattle Policy Summit, which took place on December 6, online. The first part of the day (watch here) featured Washington State Lt. Governor Cyrus Habib and Race Forward President Glenn Harris. The second part of the day (watch here) featured Budget & Policy Center Senior Policy Analyst Jennifer Tran, and a panel of local leaders moderated by Michael Brown of the Seattle Foundation. 

Our Policy Priorities

Washington state should be a place where all our residents have strong communities, great schools, and the chance for a bright future. Our 2017-2019 Legislative Agenda outlines the priorities we are working to advance to build a better Washington.

Testimonies in Olympia

To advance our legislative priorities, the Budget & Policy Center team was in the state capitol throughout session testifying on a wide range of bills. Watch our testimonies on TVW:
Misha TVW