March 20 revenue forecast and income tax on capital gains
On Wednesday (March 20) the state revenue forecast will be released. This is the last piece of the puzzle before the legislative budget and tax bills are released. Despite the fact state revenues are up significantly, efforts remain to impose an income tax on capital gains.
As this tax debate unfolds it is important to remember this information from the IRS and other states describing why taxes on capital gains are income taxes and would require a constitutional amendment in Washington. I provided these details to the House Finance Committee on January 24, 2019 during a work session on the state’s tax structure:
- IRS: Capital gains tax "is an income tax"
- Who calls a capital gains tax an income tax? Every tax authority in the country
- Is capital gains income a stable and sustainable tax source?
- Which states don’t have a capital gains income tax?
- Washington Capital Gains Proposal Not Helped by Analogy to Real Estate Excise Tax
- Voter history on income taxes
We also recently released these short videos:
- A Capital Gains Tax IS an Income Tax: Irrefutable Proof in About Two Minutes
- BAD POLICY: An Income Tax on Capital Gains for Washington
The House will be going first and releasing its budget and tax plans next week. Stay tuned.