Anti-tax group awaits Supreme Court decision on appeal of Washington state's capital gains tax

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Anti-tax group awaits Supreme Court decision on appeal of Washington state's capital gains tax

Just months after the state's Supreme Court ruled that a capital gains tax enacted by the state is constitutional, one anti-tax group awaits a decision from the nation's highest court on whether to hear its case.

The capital gains tax in question is a 7% tax on any gain in excess of $250,000 in a calendar year from the sale or exchange of specific long-term capital assets such as stocks, bonds, business interests, or other investments and tangible assets, according to the Department of Revenue.

The Freedom Foundation, a conservative think tank that aims to promote free markets and limited, accountable government, is hoping the Supreme Court will take up their appeal to overturn the tax.

s liberals in every state branch have long lamented the absence of an income tax in the state and sought ways to generate additional revenue by taxing high earners at a higher rate than those earning less, the group said in a press release.

In August, the organization submitted a motion for certiorari asking the Supreme Court to hear its appeal of the capital gains tax in Quinn v. Washington, claiming that not only was the capital gains tax unconstitutional but also had federal implications.

Inslee said that it did not have a recurrence and that he did not see any need for a remedy.

The capital gains tax has helped right an upside-down tax structure where low-income Washingtonians ultimately expend a much larger share of their income in taxes than our wealthiest residents.

The Freedom Foundation, a conservative group that supports high-tax blue states, has said it will continue to fight, especially as residents in high-tax blue states leave for lower-tax red states.

s taxpayers and undermine our entire system of federalism unless the Supreme Court acts to restore the Constitution's interstate commerce clause, Minnich said.