Spokane Standard

The proposal to tax capital gains has been put forward again at the Washington State Senate. However, it faces a hurdle in the Senate, as Republicans insist there is no need for new taxes.

The main reason for opposing Senate Bill 5096 is that it is a tax on income, which would put a burden on the taxpayers, and it violates the constitution, the Republicans argued.

“We have to remind ourselves that the IRS says that this is an income tax … and a very volatile one at that,” Sen. Lynda Wilson (R-Vancouver) said. Looking at a legal standpoint, “my concern there is the cost to the state and the taxpayers,” Wilson added.

GOP lawmakers, including Wilson, are further critical of “the emergency clause attached to the bill that would make it take effect immediately — and prevent any efforts to put it on the ballot as a referendum,” according to The Seattle Times.

The bill sponsor, Sen. June Robinson (D-Everett) believes it needs a lot more revisions or tweaks before it is accepted and made into law.

SB 5096 proposes a 7 percent tax on the capital gains of the sales of assets above $250,000.

If enacted, the bill would raise about $550 million per year, starting in the fiscal year 2023.