Capital Gains Tax or Income Tax… Same Difference?
OLYMPIA, Wash.- Lawmakers in Washington are arguing that a proposed capital gains tax is not an income tax… but rather an excise tax, or tax on goods.
"Having talked with the IRS and every single revenue director in the country, there is not a single tax authority that says that taxing income is an excise tax," says Jason Mercier with the Washington Policy Center.
He adds that if the state passed this tax, we would lose an unfair advantage for attracting business as 1 of only 9 states without an income tax.
"Recently, a letter was sent to lawmakers from 120 tech CEOs and founders making that point. Part of the reason why they're here is because of that competitive tax advantage, and if the capital gains tax is imposed they will be re-evaluating if this is still the place they still want to be doing business."
He further notes that the state has no need for this tax - the state budget is balanced and revenues are currently projected to increase by more than 7%.