US Supreme Court won't hear challenge to WA capital gains tax

[Yo_Mama_Been_Loggin]

The U.S. Supreme Court on Tuesday declined to hear an appeal challenging Washington state's capital gains tax, effectively removing the courts as an avenue for the law's opponents.

The state Supreme Court ruled in March 2023 that the law, which imposes a 7% tax on profits over $250,000 from sales of certain financial assets, does not violate the state's constitution.

The tax targets profits from the sales of stocks and bonds but not other assets such as real estate. Profits below the $250,000 threshold are not subject to the tax.

The tax, which was approved by the state Legislature in 2021 and went into effect in 2022, brought in almost $900 million in revenue last year.

https://www.bizjournals.com/seattle/news/2024/01/16/supreme-court-capital-gains-tax-appeal.html

Apparently there's also an initiative which would repeal this tax.

[bucolic_frolic]

1. Good tax. I could understand taxing stocks more than bonds.

Speculation and risk yield the highest rewards and the wealthy can afford both. Taxing prudent investing, not so much tax - houses, tangibles, bonds.

[Yo_Mama_Been_Loggin]

3. Retirement accounts and real estate are exempt from this

Or at the very least, the sale of a primary residence is.

[dutch777]

2. This is good news. I think that taxing things like this and large $ transactions is the way to balance the Fed budget

While income tax and tariffs is bread and butter cash flow, it has its limits. If you tell the average person we can fix the national deficit and settle the debt in say 10 years, we just have to raise your income tax 50% they would understandably go ballistic (and many bankrupt). However if you tax things like corporate buyouts, large money transfers anywhere in the economy, say over $2 million, at 1/10 of 1% you could eliminate the debt/deficit in that same 10 years, I only see big business complaining. Would costs get passed on, sure, where they can. Would the average household feel that, I doubt it. I have tried doing the math and just can't get the base data that says either 1/10 of 1% or 10 years are reasonable numbers but the more I read of all the big money that gets moved around with no taxation in hedge funds, off shoring and other under the tax radar moves, I think this should be looked at by Dem politicians.