19.4 C
Munich

Washington State Senate unanimously approves new capital gains tax

OLYMPIA – Earnings from the sale of more than $ 250,000 worth of shares and bonds will be subject to a new capital gains tax, which is enacted under a bill tightly approved by the Washington Senate on Saturday.

The event passed with 25-24 votes, after more than four hours of discussions, which were conducted by the Democratic House. Three members of the Democratic group voted “no”. Sens. Annette Cleveland, from Vancouver; Steven Hobbs from Lake Stevens; : Mark Mallet from Issaquah.

“Our hard-working families in Washington are ready to reform our tax code,” said Democrat Sen. June Un Robinson, the bill’s main sponsor. “They want the rich to be part of fair investments in the future of our state.”

The measure will impose a 7% tax on the sale of shares, bonds and other high-value assets, such as a classic car or painting, for more than $ 250,000 for both individuals and couples. A person whose business is worth more than $ 10 million a year is subject to tax if he earns more than $ 250,000 selling the business.

Pension accounts, real estate, farms և forestry will be exempt from the proposed tax. Senate Democrats say 16,000 to 18,000 people in the state could be taxed based on data from the State Revenue Department.

The event, which is currently being sent to the Democratic House-led House for discussion, will take effect on January 1, 2022, and is expected to raise $ 500 million a year.

Capital gains tax has been introduced several times in recent years, but has never been considered by the legislature. Saturday’s Senate vote is the longest the idea has come to fruition in the legislature. Proponents of the tax say that Washington, one of the few non-income states, relies too heavily on its sales tax, disproportionately affecting those with lower incomes.

Opponents of the capital gains tax claim that it is a type of income tax that is illegal under state law.

Other supporters of Governor’s Ey սnslլին և have stated that they believe it is constitutional. The debate will certainly end in court if the entire legislature approves the tax, և Inslee signs it into law.

Vancouver Republican Sen. Linda Wilson says such a lawsuit will “cost taxpayers a lot of money to challenge a law they do not want.”

The Democratic-led House of Representatives rejected more than a dozen Republican changes, including changes that would make the capital gains tax voluntary. Another proposed amendment extended the tax until mid-2025, so that the legislature would have time to review the proposals by a working group that is currently working on tax structure ideas.

East Wenatchee Republican Sen. Brad Hawkins said that while the floor may be narrow now, he thinks it is inevitable that it will expand.

“It’s not about power supply. We are talking about all of us, “he said. “In time, when it comes to life, if the court approves it, then all exceptions will be removed in time until it affects us all.”

One amendment removed the emergency provision of the bill, which would allow the bill to enter into force immediately after it is signed by the governor, 90 days after the end of the legislative session. The lifting of the state of emergency means that opponents can hold a referendum on the measure if they collect enough signatures from voters to cast their ballots in November.

White Center Democrat Sen. Gu Nguyen said the working class was more tax-exempt, especially during the ongoing coronavirus epidemic.

“People who have been considered significant during this epidemic pay higher taxes than those who benefit from it,” he said. “We can not go back to that same backward structure if we want a fair recovery.”

In a 28-21 vote, the Senate on Saturday passed a measure that would increase child care competencies, subsidies, increase spending on early state education, funded through a portion of the revenue expected to be collected from capital gains tax.

LEAVE A REPLY

Please enter your comment!
Please enter your name here