Ditch Washington's Capital Gains Tax? The case for No on I-2109

When you go to vote this November, it won’t just be for President or Governor. You’ll also be voting on a group of initiatives - and these things are complicated. So we’re breaking all of them down here on Soundside this election season.

And this week, we’re turning to I-2109: aka, the measure that seeks to Repeal the Capital Gains Tax.

Passed by the legislature back in 2021, the tax took effect two years ago. It charges a 7% tax on the sales of some types of assets - things like stocks, bonds, and some types of businesses. The tax kicks in on profits exceeding $262,000.

Real estate, retirement accounts, and certain small businesses are exempt. Revenue from the tax goes towards education: the first $500m raised is earmarked for schools, early learning, and child care programs. The rest goes towards school construction and renovation.

This is a tax that’s only paid by an extremely small percentage of Washington taxpayers (.001%). 4,000 people paid Washington state capital gains taxes in 2022 - producing $786m dollars in revenue. Last year, that amount decreased to $433m.

Yesterday, we spoke with former Google engineer Vijay Boyapati about the case to vote “Yes” and repeal the capital gains tax.

Today, we’re speaking with someone from the vote “NO” on I-2109 campaign.

Guest:

• Treasure Mackley is executive director of Invest in WA Now, a Seattle-based organization advocating for progressive revenue measures in Washington State - including the Capital Gains tax

Relevant Links:

• Ditch Washington's Capital Gains Tax? The case for Yes on I-2109 - KUOW
• Washington Initiative 2109, Repeal Capital Gains Tax Initiative (2024) - Ballotpedia