Former IRS National Attorney: Capitol Gains Tax IS income Tax
According to information from the Washington Policy Center and a former 30-year IRS tax vet, there's no discussion: WA state's capital gains tax is an income tax.
WA State Democrats and Inslee claim is an excise because of real estate
Jason Mercier of the Washington Policy Center recently spoke with 30-year IRS veteran and former attorney Steven Hankin.
Mercier says Hankin reached out to him to offer his opinion on how misguided WA state is about regarding this controversial capital gains tax as not being income, which is prohibited by the state constitution.
According to Mercier, and Mr Hankin:
"The capital gains tax is a tax on the seller of property, that is being sold, while an excise tax is a tax on the transfer or use of the property"
He went on to say:
"A capital gains tax is arguably a tax on the property itself and as such, it is not a tax on the sale or use of something. By contrast, an excise tax is a tax on a transaction, (on the purchase or sale or use of something),"
In order to justify this tax, the state is regarding it as an excise tax, which it is not.
A capital gains tax also applies to profits from the sale of other large ticket items, such as boats, airplanes, stock, investments etc.
And finally, Mr. Hankin, again who is a 30-year former IRS national attorney, said this about the tax, and the legal challenges it will likely face:
“Washington State is misguided in believing that just because there is a transfer of property involved, it provides a basis for the imposition of an excise tax. Frankly, I am unable to see why this matter is considered to be controversial. That is, I see no reasonable argument for saying that a capital gains tax is not an income tax, and for that reason could be subject to an excise tax. I am somewhat dumbfounded as to why the State of Washington believes it has any reasonable chance of ever prevailing in this case.”
Every other state in the nation or jurisdictional entity regards capital gains taxes as income taxes. Only in WA are Inslee and Democrats trying to play it as not being so.
LOOK: Here are 25 ways you could start saving money today