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Jared Walczak, vice president of state projects at the Washington, D.C.-based Tax Foundation, issued a series of statements on social media critical of the ruling. What will be the next type of income tax to be redefined by lawmakers? It is up to the voters now to respond.'įriday's ruling garnered some negative attention from the other Washington as well. 'With this ruling, the rules surrounding income taxes in Washington are now unclear. The state Supreme Court agreed with lawmakers that Washington has discovered the first standalone excise tax on capital gains income on the planet. Every other tax jurisdiction in the world, from the IRS, to every other state, to other countries will tell you the same thing - capital gains are income and taxes on them are income taxes,' he said in a news release. Jason Mercier, government reform director at the free-market Washington Policy Center that fought against the tax, also worries the court's decision could mean more income taxes for Washingtonians. Chase that distinguished an income tax from an excise tax and concluded that income is within the state constitution's broad definition of property, reasoning the state constitution's 'uniformity and levy limitations on property taxes do not apply.' In its decision, the state Supreme Court declined to overturn its 1933 decision in Culliton v. But taxpayers clearly need to be on their guard - we should expect the Democrats to start adjusting the parameters of this tax so it applies to more and more people over time, which means more and more of their money going to government.' 'I don't see how this decision gets them there, and that is a relief. Lynda Wilson, R-Vancouver, said in a news release. 'We know Democrats were hoping the court would rule in a way that would enable them to try for a full-blown income tax in our state,' Sen. The Washington State Budget & Policy Center's ' Schmudget Blog' said, 'This was a hard-fought victory for people who want to create a brighter future for kids, families, and communities in our state.'Ĭapital gains tax opponents, on the other hand, were dismayed by the ruling. Only 0.2 percent of Washingtonian taxpayers will see enough profits to pay this tax.' 'It impacts just the wealthiest among us. 'This tax will decrease the pressure on low and middle income families,' she said in an email. Treasure Mackley, executive director of Invest in Washington Now, agreed. Washington families and communities are counting on revenue the tax will provide to uphold the state's paramount duty to provide for the education of all youth residing within our borders.' 'Proceeds from the tax go to the Education Legacy Trust Account, which funds childcare, preschool, special education, and community and technical colleges. 'This tax, which only the wealthiest families will pay when they sell assets like stocks or bonds, funds essential public services that benefit all Washingtonians,' Andrew Villeneuve, founder and executive director of the Northwest Progressive Institute, told The Center Square in an email. Progressive think tanks also hailed the decision. 'It is gratifying as governor to join so many Washingtonians in this historic victory today, one that has been elusive in the face of years of opposition from powerful interests.'

'Washington's capital gains tax helps right an upside-down tax structure where low-income Washingtonians ultimately expend a much larger share of their income in taxes than our wealthiest residents,' Gov. Those divergent viewpoints were reflected in what supporters and opponents had to say about Friday's ruling.

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