Washington state kicks off major tax fight with new capital gains levy | TheHill

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The home of the two richest men in America is on the brink of implementing a new tax on capital g...
ains that would raise billions of dollars for early childhood education and child care programs — while setting off a years-long legal fight that could end a nearly century-long resistance to an income tax.

Washington state legislators are finalizing language on a bill that would tax capital gains over $250,000 at a 7 percent rate, in what may prove to be one of the most substantial tax increases approved by any state legislature in 2021.

Supporters of the measure say it would fall on just a few thousand of the wealthiest families in a state full of major technology companies and budding startups, from Amazon and Microsoft — companies founded by Washington residents Jeff Bezos Jeffrey (Jeff) Preston BezosTucker Carlson blasts Washington Post columnist NASA picks Elon Musk's SpaceX to build spacecraft for manned moon missions Harvard Business community backs alumna's discrimination lawsuit against Amazon MORE and Bill Gates, numbers one and two on the list of the world's richest people — to IMDb and Redfin.

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In a state where the tax code remains one of the most regressive in America, the new tax would help even out the growing disparities between the wealthy and a shrinking middle class that has been pushed to the brink.

"We're seeing extreme inequality that leads to rampant homelessness, lack of access to education and opportunities," said state Sen. Joe Nguyen (D), one of the bill's lead sponsors. "This is a way to invest in people, a way to invest in infrastructure and the needs we have in order to make people successful."

The capital gains tax has passed both the state House and Senate, though the two chambers have appointed members of a conference committee to hammer out several disagreements between the two versions. The legislators on the committee have until Sunday, the end of this year's legislative session, to reach a deal.

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