Economic Justice Taxation Washington State Politics

A Resolution Supporting a Washington State Capital Gains Tax

Whereas the obligation under current state law for the 2013-15 biennium is more than $1.2 billion more than projected revenue during that period; and

Whereas the Joint Task Force on Education Funding created by the State Legislature determined that an additional $1.4 billion is needed during this biennium, and an additional $4.5 billion by the 2017-19 budget cycle, to fulfill obligations outlined in the Washington State Supreme Court’s McCleary decision requiring full funding of K-12 basic education; and

Whereas Washington State was again rated in 2013 as having the most regressive state and local tax system in the U.S. with those with the lowest income paying 17% of their income in state and local taxes, while the 1% with the highest income pay only 3%; and

Whereas Washington is one of only seven states that does not tax capital gains, dividends or interest and in 29 states capital gains tax rates are greater than 5%; and

Whereas no other single source of funding can come as close to closing the budget deficit; and

Whereas capital gains are highly resistant to downturns in the economy with the Dow Jones Industrial Average growing by 47% during the period from 2009 to 2011, while personal consumption expenditures only grew by 9% and wages and salaries grew by less than 2% during that period; and

Whereas fewer than 12% of Washingtonians have taxable capitals gains income, but only 3% of Washingtonians have annual capital gains income greater than $5,000 for individuals and $10,000 for married couples [Editor’s note: the tax would apply to capital gains above those amounts]; and

Whereas a flat 5% capital gains tax on those 3% of Washingtonians would generate more than $1 billion during the 2013-15 biennium, but would only increase those personal taxes by less than 1% of their annual income; and

Therefore be it resolved we, the 30th District Democrats, call upon the Washington State Legislature to pass a capital gains tax both to fill our budget deficit and to meet our obligations ordered in the McCleary decision; and

Be it finally resolved that the 30th District Democrats urge each member of the Washington State Legislature to pass a state capital gains tax to make our taxes fairer and to fund necessary programs.

Adopted on April 3rd, 2013 by The 30th District Democrats, Tim Burns, Chair



One Reply to “A Resolution Supporting a Washington State Capital Gains Tax

Comments are closed.