The Seven Percent Solution.

ActivatingThePassive
OlympiaVille


Something most interesting is happening just south of Lotusland.

The following is from a piece by Claire Withycombe, published last week in the Seattle Times:

Early figures suggest (the state of) Washington could bring in $849 million in its first year of collecting the state’s new capital gains tax, potentially sending hundreds of millions more than expected to schools across the state.

State lawmakers passed the 7% tax on the sale or exchange of stocks, bonds and certain other assets above $250,000 in 2021. It has faced legal challenges, but got the go-ahead from the state Supreme Court in March.

The Legislature passed a budget based on earlier projections indicating Washington could collect $248 million in capital gains tax payments in the 2023 fiscal year, which ends July 1.
Instead, as of May 9, the state has collected $601 million more...

Secret Canadian Cory Doctorow explains why this is a revenue stream that is both a gusher and progressive:

...Capital gains taxes are levied on "passive income" – money you get for owning stuff. The capital gains rate is much lower than the income tax rate – the rate you pay for doing stuff. This is naked class warfare: it punishes the people who make things and do things, and rewards the people who own the means of production...

{snip}

...The Washington State tax is levied exclusively on annual gains in excess of a quarter million dollars – meaning this tax affects an infinitesimal minority of Washingtonians, who are vastly better off than the people whose work they profit from...

{snip}

...Washington's tax was anticipated to bring in $248m. Instead, it's projected to bring in $849m in the first year. Those funds will go to public school operations and construction and infrastructure spending...

Gosh.

An infinitesimal minority, who profit from the work of the majority, paying their (still less than) fair share to make a big difference that benefits everyone?

Imagine that!

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