The U.S. Supreme Court has declined to add Quinn v. Washington to its docket. This Washington state case was an attempt by well-funded special interests to overturn the capital gains tax so some millionaires and billionaires can continue hoarding their wealth at the expense of the needs of kids and families in our state.
“It’s great news for Washington state and our country that the United States Supreme Court has decided not to hear oral arguments for Quinn v. Washington,” said Budget and Policy Center Executive Director Misha Werschkul. “This case was a cynical attempt by the wealthiest Washingtonians to overturn a modest tax impacting only the very wealthiest 0.2% of Washington taxpayers. In 2023 alone, the capital gains excise tax raised nearly $1 billion to pay for investments in schools, child care, and early learning. With today’s order, the Washington State Supreme Court’s overwhelming 7-2 ruling in favor of the constitutionality of the tax stands.”
Our capital gains tax was signed into law by Governor Inslee in 2021 and upheld by the Washington State Supreme Court last year in an overwhelming 7-2 decision. As a refresher, this Washington law enacts a modest 7% excise tax on annual capital gains above $250,000, exclusively paid by the wealthiest 0.2% of Washingtonians, whose incomes average $2.6 million annually.
In 2023 alone, the capital gains excise tax raised nearly $1 billion to pay for investments in schools, child care, and early learning. With today’s order, the Washington State Supreme Court’s overwhelming 7-2 ruling in favor of the constitutionality of the tax stands.
– Misha Werschkul
The funding provides critical supports for early learning, child care, and schools in Washington. So far, the projections for how much revenue this tax will provide have blown original estimates out of the water. The Department of Revenue anticipates a whopping $900 million will be collected in the first year alone to strengthen our communities.
We’re so grateful to the advocates who fought hard for this win and for those wealthy individuals who spoke out about the need for this tax and the revenue it will provide to school districts and early learning programs.
We are continuing to monitor efforts by wealthy Washingtonians to overturn this law via ballot initiative in 2024. Alongside partners, we will continue to push for changes to make Washington state’s tax code more equitable.
For media inquiries, email Communications Director Melinda Young-Flynn.