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7.0 magnitude earthquake reported off Northern California coast, tsunami warning canceled; Fewer Hoosiers vote in 2024 amid early voting tensions; 'ALICE at Work' paycheck-to-paycheck struggle; New push for protection for manatees, Florida's 'gentle giants.'

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The Senate Indian Affairs chair says a long-imprisoned activist deserves clemency, Speaker Mike Johnson says they may end funding for PBS and Planned Parenthood, and Senate Republicans privately say Hegseth's nomination is doomed.

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Limited access to community resources negatively impacts rural Americans' health, a successful solar company is the result of a Georgia woman's determination to stay close to her ailing grandfather, and Connecticut looks for more ways to cut methane emissions.

Repeal of WA's capital gains tax would hurt families, opponents say

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Thursday, September 26, 2024   

The election is less than six weeks away and Washingtonians will be deciding on a slate of initiatives, including one measure affecting funding in support of children.

If passed, Initiative 2109 would repeal a 7% tax on capital gains for assets worth more than $262,000. The repeal has support from hedge fund manager Brian Heywood, who said it is a slippery slope toward a state income tax, which the state does not have.

Gabriela Quintana, senior policy associate for the Economic Opportunity Institute, said fewer than 4,000 people in the state pay the tax.

"It's a very privileged move to be able to fund these initiatives for your own needs and to not think about the impact this will have on a huge majority in Washington state," Quintana contended.

Last year, the tax pulled in about $786 million. The first $500 million collected from it goes toward schools, early learning and child care. Any additional money collected goes toward school construction.

Justin Fox-Bailey, president of the Snohomish Education Association, said the vast majority of Washingtonians who do not pay the capital gains tax will be affected if Initiative 2109 passes, especially kids.

"They're going to feel it in their communities when we give a tax cut to these millionaires and billionaires and you don't have the same access to child care, your kid's school isn't getting updated, public services are being cut or reduced," Fox-Bailey pointed out.

Washington has historically had one of the most regressive tax systems in the country and a recent report found the lowest-income 20% pay more than three times as much of their income as the top 1%.

Quintana argued the capital gains tax is vital for the state.

"We all need to play a role, including the wealthy individuals," Quintana asserted. "Repealing it will only really hurt families and children."

Ballots start going out on Oct. 18.

Disclosure: The Economic Opportunity Institute contributes to our fund for reporting on Budget Policy & Priorities, Education, Livable Wages/Working Families, and Senior Issues. If you would like to help support news in the public interest, click here.


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