{"id":2371140,"date":"2024-11-20T09:11:02","date_gmt":"2024-11-20T14:11:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/proposed-seattle-capital-gains-tax-appears-unlikely-to-pass-washington-examiner\/"},"modified":"2024-11-20T09:13:23","modified_gmt":"2024-11-20T14:13:23","slug":"proposed-seattle-capital-gains-tax-appears-unlikely-to-pass-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/proposed-seattle-capital-gains-tax-appears-unlikely-to-pass-washington-examiner\/","title":{"rendered":"Proposed Seattle capital gains tax appears unlikely to pass &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fproposed-seattle-capital-gains-tax-appears-unlikely-to-pass-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2371140&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/stock-market-tanks-after-report-on-biden-plan-to-pay-for-leftist-agenda-experts-warn-it-is-insanity\/\" title=\"Stock Market Tanks After Report On Biden Plan To Pay For Leftist Agenda, Experts Warn: \u2018It Is Insanity\u2019\">proposed capital gains tax<\/a> in Seattle appears unlikely to \u2064pass \u2063after a recent 4-4 vote, \u200bwith one\u2064 member abstaining, in the \u200cSelect Budget Committee. Council Bill 120908, which aims to impose a \u200c2% excise \u200ctax on non-retirement financial gains exceeding $250,000, will be voted on again soon, although its chances of approval seem slim. In addition to the proposed local tax, Washington state already charges a 7% tax on long-term capital assets sold for gains above\u2064 $262,000, adjusted for inflation. The new tax could increase the overall tax \u2062burden on affected residents between 6.5% and \u200b9%, \u2063depending on\u200c various factors; however, some individuals might exploit a loophole to avoid it by changing their permanent\u200b residence. Concerns\u200c have been raised \u200dabout the potential \u2062migration of wealthy citizens out\u2063 of Seattle if the tax is enacted. Councilmember Cathy Moore sought \u200dto clarify that the tax is not an income tax but an excise fee applied to capital gains\u2064 realized from the sale of financial assets.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Proposed Seattle capital gains tax appears unlikely to pass<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1886142\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square) &ndash; A proposed capital gains tax in Seattle failed to get a &ldquo;pass&rdquo; recommendation out of the Select Budget Committee, with&nbsp;<a href=\"https:\/\/seattle.legistar.com\/LegislationDetail.aspx?ID=7017516&amp;GUID=97FE0B49-AB3F-4198-B14B-3CD29A08F086&amp;Options=&amp;Search=\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Council Bill 120908<\/strong><\/a>&nbsp;garnering a 4-4 vote, including one abstention.<\/p>\n<div class=\"article-paywall\">\n<p>Sue Romero, communications strategist with the Seattle City Council explained that &ldquo;although it&rsquo;s unlikely to pass given today&rsquo;s vote tally, the cap gains excise tax will be voted on again on Thursday. Technically it advances without a &lsquo;pass&rsquo; recommendation from the committee.&rdquo;&nbsp;<\/p>\n<p>The tax would impose a <a href=\"https:\/\/amzn.to\/3YuVZYV\">local 2% capital gains excise tax applicable<\/a> to non-retirement financial gains over $250,000.<\/p>\n<p>The state levies a 7% tax on the sale or exchange of long-term capital assets&nbsp;such as stocks, bonds, business interests, or other investments and tangible assets.&nbsp;The tax is only on gains over $262,000, adjusted for inflation.<\/p>\n<p>These residents would see a 6.5% to 9% increase in tax burden depending on the capital gains amount and the federal tax rate. However, they could have avoided the tax through a loophole.<\/p>\n<p>The tax is based on where a taxpayer&rsquo;s permanent residence is located, which means residents with multiple Washington addresses could make a simple switch on their permanent address and avoid the tax.<\/p>\n<p>The Center Square previously reported on the&nbsp;<a href=\"https:\/\/www.thecentersquare.com\/washington\/article_88d5cc46-a205-11ef-ab63-2b7d4877b412.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>potential exodus of Seattle&rsquo;s wealthiest residents<\/strong><\/a>&nbsp;if this tax had been approved. In 2023, 816 taxpayers in Seattle paid the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-calls-for-record-high-taxes-were-closing-in-on-a-50-rate\/\" title=\"Biden urges highest-ever taxes, nearing 50% rate\">state capital gains tax<\/a>. Out of the 816, 163 paid 85.7% of the state capital gains tax.<\/p>\n<p>Seattle City Councilmember Cathy Moore is the prime sponsor of the capital gains tax bill. She said her office received messages from subjected residents who were worried the tax would push them out of the city.<\/p>\n<p>&ldquo;To those individuals, I want to be very, very clear that this is not an income tax &ndash; we are not taxing wages, we are not taxing earnings,&rdquo; Moore said during Tuesday&rsquo;s Select Budget Committee meeting. &ldquo;This is an excise fee that would be paid once somebody has sold their stocks or bonds and they have received over $250,000 in profit.&rdquo;<\/p>\n<p>Retirement accounts, real estate sales, condemnations, livestock in the conduct of a farming and ranching business, timber, commercial fishing privileges, and goodwill from the sale of auto dealerships would have been exempt from the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/alexis-mercedes-rinck-wins-seattle-citywide-council-seat-washington-examiner\/\" title=\"Alexis Mercedes Rinck wins Seattle citywide council seat - Washington Examiner\">local capital gains tax<\/a>.<\/p>\n<p>Councilmember Rob Saka rejected the bill and called the proposal &ldquo;the right tax at the wrong time.&rdquo;<\/p>\n<p>Seattle City Council Chair Sara Nelson also rejected the bill. She pointed out that the&nbsp;Office of Economic and Revenue Forecasts&rsquo;&nbsp;<a href=\"https:\/\/seattle.legistar.com\/View.ashx?M=F&amp;ID=13540594&amp;GUID=C60AEEB2-005F-42A8-8399-847FF5A9EF22\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>memo<\/strong><\/a>&nbsp;for the proposed tax anticipated that the long-term effect of the tax on economic activity in the city would likely be negative, if passed.<\/p>\n<p>Moore originally proposed the tax to support the city in securing progressive funding sources as the city continues to deal with budget challenges in future years.<\/p>\n<p>Moore previously said the tax proposal has broad public support as shown by a majority of Washington voters rejecting Initiative 2109, which would have repealed the state&rsquo;s capital gains tax.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1886142\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1886142\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Seattle&#8217;s proposed capital gains tax likely won&#8217;t pass<\/p>\n","protected":false},"author":1,"featured_media":2371141,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/03\/seattle-1024x598.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[36855,5894,7035,24338,32076],"class_list":["post-2371140","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-capital-gains-tax","tag-politics","tag-seattle","tag-taxation","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/03\/seattle-1024x598.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2371140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2371140"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2371140\/revisions"}],"predecessor-version":[{"id":2371144,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2371140\/revisions\/2371144"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2371141"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2371140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2371140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2371140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}