Capital Gains Lawsuit Resources
Initiative 2109 Would Repeal Washington State’s Limited Capital Gains Tax that Only the Top Two Tenths of One Percent of Households Pay
Olympia, WA: Today Initiative 2109, a proposal filed by controversial state Republican Party Chair Jim Walsh and bankrolled by mega-millionaire Brian Heywood, was certified by the Washington Secretary of State. If passed in November, it would slash nearly $900 million a year in funding from Washington’s schools, early learning, and childcare to give a tax cut to the very wealthiest, just 0.2% of Washingtonians.
Tax data from last year shows that 99.8% of Washington households did not pay the tax. It generated nearly $900 million with a 7% tax on nearly $13 billion in stock profits going to super-rich Washingtonians. The money raised by the capital gains tax goes to funding education, more childcare and early learning.
Sales of real estate, retirement assets, small businesses, and farms are exempted. It applies only to annual profits above $262,000 a year from the sales of financial assets such as stocks and bonds.
Dr. Stephan Blanford, Executive Director of Children’s Alliance, Seattle Times oped author:
“Millions of students, whether in pre-school, high school, or technical college, are directly benefiting from the extra money raised by this tax on the ultra-rich. With passage of the capital gains tax, our state went from being one of the most regressive tax systems in the country to one that promises to be more balanced.”
Treasure Mackley, Executive Director of Invest in WA Now:
“After failing in the legislature, failing to qualify for the ballot last year, losing in the Washington Supreme Court, and losing in the U.S. Supreme Court, a mega-millionaire is making a last-ditch attempt to buy himself a tax break with this initiative. Poll after poll shows the capital gains tax is overwhelmingly popular because Washingtonians want the super rich to pay what they owe our communities.
Last year the wealthiest Washingtonians raked in nearly $13 billion in profits off of stocks, and paid a modest 7% tax on those profits to raise nearly $900 million for schools, childcare and early learning. We will not allow a mega-millionaire to grab this money from Washington’s kids just to enrich his wealthy friends.”
The initiative to the legislature would roll back the capital gains tax on stock windfalls paid by the wealthiest 0.2% of Washingtonians. It is bankrolled by mega-millionaire Brian Heywood, who would likely benefit from its repeal. Heywood and his campaign are currently under investigation by the PDC for misreporting campaign funds.
Sharon Chen, Progress Alliance board member, Spokesman Review oped author:
“All wealthy people need to pay more taxes – and I should know, I’m one of them. To those who say the new state capital gains tax on stock profits bigger than $250,000 will somehow drive away our wealthiest residents – that’s not how it works. Wealthy people move to, and stay in, places that have great schools and universities, clean air and water, healthy food, and a vibrant culture. Those who’ve done extremely well in Washington have a responsibility to act together to invest in our state and our communities.”
According to a Fall 2023 poll, only 31% of voters say they support the rollback.
That’s consistent with poll after poll, where voters nationwide say they want the super-rich to pay their fair share of taxes (Impact Research). Washingtonians have long said they support the capital gains tax of 7% on extraordinary stock market profits greater than $250,000 (King 5/Survey USA, GBAO, PPP, GBAO).
Washingtonians sent more than 67,000 emails, voicemails and other messages to legislators, through Invest in WA Now alone, supporting taxing the ultra-wealthy, like these recorded messages.
Many more in the business community support the new tax. Small business owners and members of the tech industry see how immense wealth is stuck at the top. Struggling small businesses understand we need to get more money into the wallets of consumers to avoid another long recession.
Even people who will likely pay cap gains say they have an obligation to pay what they owe to help WA.
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