The Washington State Supreme Court ruled 7-2 that, despite plain language in the constitution which prohibits capital gains tax and nearly a century of precedent, the recent capital gains tax enacted into law by state Democrats is constitutional because it the court considers it an excise tax as opposed to a property tax.
The new capital gains tax places a 7% tax on the sale of financial assets, such as stocks and bonds, with profits of at least $250,000, excluding assets related to real estate or retirement. This tax is estimated to bring in $500 million in revenue annually.
This is a huge blow to Washingtonians who have invested their hard-earned money in hopes of reaping the benefits in the future. With an average of 58% of Americans owning stocks, and roughly 30% of Washington State households making less than $50,000, these individuals are now forced to fund the bloated state government so that Democrats can fund their pet projects and special interests.
The Washington State Constitution reads as follows:
“All taxes shall be uniform upon the same class of property within the territorial limits of the authority levying the tax and shall be levied and collected for public purposes only. The word “property” as used herein shall mean and include everything, whether tangible or intangible, subject to ownership.”
Clearly, the state Constitution prohibits the new tax implemented by Democrats, though the state Supreme Court has flatly and blatantly ignored both the Constitution and a century of precedent to support a partisan agenda that hurts taxpayers in an already struggling economy. It has been proven time and again that increased taxation and regulation will cause people to flee Washington and go to states with better regulatory climates, such as Florida or Texas.
Washington State’s founders clearly had in mind a state where people could prosper and contribute to a booming economy. Governor Jay Inslee, Democrat lawmakers, and now the State Supreme Court have trampled on those principles by forcing through this unconstitutional and harmful tax.
The post Washington State Supreme Court Rules Capital Gains Tax is Constitutional appeared first on Americans for Tax Reform.
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Author: Ethan Miller
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