Washington State Budget & Policy Center: Closing the Tax Break on Capital Gains
ITEP Work in ActionA capital gain is the profit an individual receives from the sale of a financial asset. Currently, Washingtonians receive a tax break on the profits they make from the sale of high-end capital assets. This tax break contributes to our state having the most upside-down tax code in the nation, in which people with low incomes pay seven times more as a share of their household incomes in state and local taxes than the wealthiest one percent. Removing the tax break on capital gains would help flip our tax code right-side up while providing our state with more revenue to pay for schools and other key priorities that help communities thrive.