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Jan 9, 2019

Proponents of a capital gains tax need to be honest and call it what it is, an income tax. Every state revenue department in the country calls a capital gains tax an income tax. The IRS recently answered this question directly saying, “It is an income tax.” If you want an income tax in Washington stop playing games to try to evade the state’s prohibition on graduated income taxes and propose a constitutional amendment.

Imposing an income tax, however, will throw away what Washington’s Department of Commerce calls a “competitive advantage” and “great marketing” for the state. A capital gains tax in particular will inject extreme volatility into the state’s revenues and budget.

Additional resources on the proposed capital gains income tax: