State voters overwhelmingly vote to recommend repeal of the capital gains tax

Nov 4, 2021
Written by Mark Johnson, Senior Vice President of Policy and Government Affairs

As the first ballots were counted on November 2, it was clear that voters across the state overwhelmingly recommended a repeal of the newly adopted Capital Gains Tax.

While many votes have yet to be tallied, trends point to the repeal side maintaining a sizeable lead.

Unfortunately, in Washington State, voters can only “recommend” what they want from their legislators. What they really need is the ability to repeal bad tax policy. The Capital Gains Tax narrowly passed the state legislature under much controversy and debate. Court challenges have been filed to overturn the tax because it violates our state constitution by taxing income. It may be up to the State Supreme Court to Decide soon.

Also, plans are in the works to run an initiative to make it clear that a Capital Gains Tax and any other attempts to tax income are illegal.

WR opposed the adoption of a Capital Gains Tax. Many of our smaller, family-owned businesses would be subject to this tax. These business owners worked for years building up their enterprises in hopes of someday selling them for a profit and retiring. The business is part of their retirement plans. It is wrong to expect these businesses to pay an additional 7% on top of all the other taxes they have been paying for the life of their business.