WPC has warned many times that the capital gains tax recently passed by law is actually an income tax. The IRS, the Congressional Budget Office, the finance departments of all 49 other states – even the legislation itself indicates that income tax information is required to collect the tax. The Court's precedent since the 1930s confirms this view of the tax. However, proponents get away with calling it an "excise tax" and most of the media is calling it a "dispute" that will ultimately be settled in court (ignoring the fact that it had been settled for a very long time. WPC also received an email By a key Senate's disclosure of this tax was key to sparking a lawsuit that could enable them to pave the way for a broader progressive income tax, and they hope a new era of judges would help them achieve a broader income tax by setting aside nearly a hundred years of legal precedent, the wishes expressed by voters, and the clear process for which such changes are to be made (the state constitutional amendment process).
WPC has also warned that income tax on capital gains is a bad policy. You can see why here.
Now a new column in the Wall Street Journal adds even more perspective, showing that the tax, which has been repeatedly described as a small collection of resources, could actually turn Washington State into an elite group of high-taxing states that generate capital gains with more than 50 percent achieve. From the column:
Justice? Washington State passed its new tax on capital gains despite Mr Biden proposing a federal increase that would raise the maximum rate from 23.8% to 43.4%, including the surcharge tax under the Affordable Care Act. Combine the two tax increases and Washington residents now pay up to 50.4% of their capital gains to one government or another.