WR stands in full support of Initiative 2109, which seeks to repeal Washington’s capital gains tax. This tax, enacted just two years ago, has added complexity and uncertainty for businesses, impacting financial planning and long-term investments. WR believes that repealing the capital gains tax will promote a more stable economic environment, benefiting both businesses and consumers.
The current tax, though targeted at a small group of high-income earners, has broader consequences. Its volatile nature makes it difficult to forecast, and collections have already declined by 50% from the first to the second year. Removing this tax would eliminate the unpredictability that retailers and other businesses face, enabling them to focus on growth and job creation without the looming threat of fluctuating tax liabilities.
While state revenue reductions from the repeal would impact the Education Legacy Trust Account, WR emphasizes that funding for key programs like the common schools construction account remains untouched. By creating a more business-friendly tax climate, WR believes Washington can encourage investment, support job growth, and foster economic resilience.
Voters will have the opportunity to decide on this critical measure on November 5, and WR urges support for I-2109 to drive future prosperity.
Washington Research Council Policy Brief
