Thursday, July 14, 2022

State of the income tax challenge

Last year, the State Legislature enacted a 7% tax on gains from the sale of stocks, bonds, businesses and other investments, if the net income  exceeded $250,000.  The Legislature, and present State Attorney General Bob Ferguson, claim that makes the tax  a sales tax.

Opponents of the new tax say a capital gains tax is an income tax.  The case is being handled by former State Attorney General Rob McKenna.

In march, the Douglas County Superior Court struck down the new tax.

The state appealed the decision. On Wednesday, the State Supreme Court agreed to hear the case directly, bypassing the State Appeals Court system.  The action is titled  Quinn v. State of Washington.

The 14th Amendment of the state's constitution states all taxes in the state must be "uniform upon the same class of property." Property is defined as "everything, whether tangible or intangible, subject to ownership."

(Freedom Foundation)


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