The budget proposal released by House leadership shows that the only way to sustainably fund the investments we all care about is to clean up the tax code. The Budget & Policy Center applauds that House leadership invests in our shared priorities and balances our tax code by closing the tax break on capital gains. Balancing our upside-down tax code helps make sure our state has the resources it needs to invest in great schools, preschool and child care, critical mental and behavioral health services, clean air and water, and other areas that help our state thrive.
For too long, our state has relied on an upside-down tax code that over-relies on low-income families while helping the ultra-wealthy and special interests get ahead. The House plan would make necessary community investments by:
- Closing the tax break on capital gains by enacting a 9.9 percent rate on high-end profits from the sales of financial assets (profits above $200,000 per year for a married couple), which will be directed to the Education Legacy Trust Fund to support schools and early learning;
- Making the real estate excise tax (REET) more progressive by lowering the rate for properties selling for $500,000 or less, and increasing the rate for properties selling above $1.5 million;
- Closing other wasteful tax breaks, like the business tax preference for gold bullion dealers and travel agents and tour operators.
We urge the Senate to follow the House’s leadership and move our state forward toward a balanced tax code that allows all Washingtonians to thrive.