A Douglas County Superior Court judge has struck down, rather decisively, the state’s controversial income or ‘capital gains’ tax, but GOP leaders say it’s not over .
Even the IRS considers capital gains as income, it’s a well-known fact backed up by numerous studies, and even the IRS itself.
WA State AG Ferguson says he will appeal court ruling
According to House Republican leaders, including Ed Orcutt (Kalama-Cowlitz County), who is the House Republican Chief Financial Officer:
“Douglas County Superior Court Judge Brian Huber ruled that capital gains legislation” is properly characterized as an income tax … rather than an excise tax, as argued by the ‘State.
Even the IRS considers capital gains as income, it’s a well-known fact backed up by numerous studies, and even the IRS itself. And, income taxes are prohibited by the Washington State Constitution.
However, the Democrats, at the behest of Governor Inslee, tried for several legislative sessions to turn it into an excise tax. According to taxpolicycenter.org:
“Capital gains are profits from the sale of a fixed asset, such as shares, a business, a plot of land, or a work of art. Capital gains are generally included in the taxable income, but in most cases they are taxed at a lower rate.”
Apparently AG Ferguson cares more about taxing citizens than following the State Constitution?
Given that Judge Huber ruled this way and used some rather strong language in his judgment, it’s ironic that Ferguson says he will appeal.
Orcutt and other lawmakers say that means the next step will be the state Supreme Court, and they’ve never been known (as they currently stand) to strictly adhere to what the “law” says; rather, they lean heavily on the side of Inslee and his politics.