Rep. Skyler Rude’s statement on the historic approval of the first-ever income tax on capital gains by the state Legislature

Rep. Skyler Rude, R-Walla Walla, released the following statement on the first-ever income tax on capital gains passing the Washington State Legislature.

“In a historic vote, the Legislature has passed its first-ever income tax on capital gains. I opposed Senate Bill 5096 for a variety of reasons, including concerns about the constitutionality of this bill as written.

“The narrative by those supporting new sources of state revenue are based on a couple of troubling maneuvers behind the scenes.

“First, the rain-day fund balance was diverted into another account for future spending, shielding it from the supermajority otherwise needed to use those reserve funds.

“Also, with the state experiencing a $3.3 billion budget surplus, I question the necessity for bringing a tax like this forward. The state has enough money to fund the operating budget without raising taxes. Yet, the Legislature approved this new tax.

“Voters have rejected an income tax, in any form, in every single Washington county, so I am also troubled by the denial of having a referendum clause in this bill. Because of this, voters of our state will not see this tax measure on their ballot and have the opportunity to weigh in, as they have multiple times in the past.

“Finally, in a time when we should be reducing the tax burdens on working and low-income families, the only thing the income tax on capital gains does is provide a new layer onto the already regressive tax system in Washington state.”

###

Washington State House Republican Communications
houserepublicans.wa.gov