In collaboration with prominent business groups, the Citizen Action Defense Fund (CADF) has filed an amicus brief advocating for the U.S. Supreme Court to reassess the Quinn v. State of Washington case due to ongoing concerns surrounding the Capital Gains Tax.
The Capital Gains Tax has faced significant criticism for a variety of reasons. There’s growing concern about the potential for double taxation, where the same revenue might be taxed twice, placing an undue financial burden on taxpayers. For businesses, especially those operating across multiple states, the tax presents operational challenges that make compliance daunting. The tax also raises issues related to a state’s authority to impose an excise tax on transactions outside its boundaries.
The Opportunity for All Coalition has also extended financial support for the brief. Due to its alleged unconstitutionality and potential adverse effects on businesses and workers, the Capital Gains Tax has garnered national attention.
Jackson Maynard, Executive Director of CADF, voiced his concerns by stating, “The Capital Gains Tax isn’t just an ill-conceived law—it’s a policy that negatively impacts businesses and workers alike.” He emphasized the undue challenges placed on Washington residents and businesses due to this tax. Maynard also highlighted the selective nature of the tax, pointing out that it’s not applied uniformly to out-of-state residents, which brings into question its practical and legal standing.
Concluding his remarks, Maynard said, “The state’s highest court views this as an excise tax, but it’s problematic for states to tax activities beyond their own boundaries. Given its unconstitutional implications and its negative impact on businesses, the U.S. Supreme Court should indeed revisit the decision of the state supreme court.”