Even Forbes Has Noticed Inslee’s Capital Gains Tax Proposal

If Gov. Jay Inslee gets his way, a 9 percent capital gains tax, it would be the only 'stand alone' such tax in the U.S., reports Forbes Magazine.

In a January 29th. article, contributor Patrick Gleason of Americans for Tax Reform writes Inslee wants a tax of 9 percent on investment exceeding $25K for individuals and $50K for couples. It is noted in the article that no other state that doesn't have an income tax has a capital gains tax.

GOP House Rep. Drew Stokesbury, the GOP ranking member on the State House Appropriations Committee is quoted in the article as saying:

“If we’re telling people who have the capital to invest that it’s going to cost them to do so, they’re less likely to stay here and do it..."

It's likely if it passes, it will be met with a judicial challenge as being un-Constitutional. However, some say Inslee is hoping so because it would clear the way for the state of pursue an income tax--which is also against the Constitution.

Either way, if Inslee's plan is passed, it would couple with Biden's proposal to boost capital gains taxes to a 40% rate--making it 50% in WA state.

Many GOP and business leaders who oppose Inslee's plan point to the volatility of capital gains taxes. Due to the flexibility and levels with which people 'take' or get their gains, it's not a revenue source that is set in stone. It can fluctuate, and the tax revenue from capital gains would go up and down as well.

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