The Capitol in Olympia. (AP Photo / Ted S. Warren, File)
The big debate about a capital gains tax continues in Olympia. Some critics argue that it is an income tax which means potential legal challenges. Democratic Presenter Noel Frame attended the Dori Monson Show to discuss Dori about the reasons behind the effort and how she believes it is different from an income tax.
“We’re talking about a capital gains tax, which is an excise tax under Washington State law. What I think is a good comparison is that we’re talking about different types of real estate in Washington state. If you sell your house, which is real estate, you pay real estate tax, ”she said.
“Now if you sell a net present value like an intangible financial asset like a stock or a bond, you’re paying 0% on that sale. This capital gains tax, ie the transaction for this sale, is very similar to the real estate tax that the middle class already pays on their only property, their own home. So again it’s just parity in the tax code, ”she continued. “And so we really believe it’s a consumption tax.”
Former Washington AG: The proposed capital gains tax is a disguised income tax
As Dori argued, a state representative asked the IRS whether a capital gains tax is an income tax, and they replied, “They asked whether the capital gains tax is considered an excise tax or an income tax. It’s an income tax, ”read Dori.
“The IRS does not control or dictate what the state tax law is, and as a state tax law, it is a consumption tax,” replied Rep. Frame. “Well, Dori, this is something that is argued about in court, I have no doubt about it. But right now you’re talking about a tax that literally affects less than 1% of Washington residents, 0.23% in fact. “
The business owner who left Seattle for Arizona was “sick and tired of being sick and tired”.
“And we think it’s a key tool in tax reform if some of Washington’s richest people really get their fair share back,” said Frame. “And hopefully, as you will see, we actually tabled the bill that some of these funds were going to be used for the Working Family Tax Credit, great bipartisan piece of legislation that we already passed out of House, House Bill 1297. Some of those funds go towards this working family tax credit. We really believe that this is a key tool for reform. “
Listen to the Dori Monson Show on weekday afternoons from 12pm to 3pm on KIRO Radio, 97.3 FM. Subscribe to the podcast here.