A bill that popped up in the Washington State Senate last week illustrates how the recent State Supreme Court ruling on the capital gains tax has opened the door for other similar 'excise' taxes.

Two Democrat Senators pushing hospital administrator tax

The legislation is already being called the "excess compensation tax" and it's the brainchild of Democratic Senators Christine Rolfes and Emily Randall.  Senate Bill (SB) 5767 would impose a 7.5 percent "excise" tax on hospital administrators.

According to the text of the bill, and information from Jason Rants of AM 770 KTTH Seattle, the tax would apply to administrators whose compensation is ten times the annual average wage paid to workers statewide.

The bill says the funds raised would be used to  “advance health equity” and also fund abortions.

Many people are wondering why this tax is aimed at hospital administrators, but according to Rantz:

"Right now, Democrats are targeting hospital administrators because it allows them to justify even more funding of abortions, but also because they have a mutually beneficial relationship with various unions that represent healthcare workers."

Because the State Supreme Court ruled the capital gains tax is an "excise" tax and not an income tax (which is against the state constitution), Rantz and some GOP legislators are warning there could be a slew of new "excise" income taxes that some legislators will try to push through the legislature.

Those who introduce these type of taxes, including this administrator tax, will use the State Court's ruling as justification for the push.

WA state is the only place in the US where capital gains are not considered income, even the IRS nationally treats such money as income.


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