“If at first you don’t succeed try, try again.”
When it comes to imposing an income tax on Washington State, Senate Democrats haven’t so much resorted to just trying again, but misleading voters about what it actually is.
Washington state voters have rejected an income tax TEN TIMES when it’s been brought up for a vote. After ten failures, rather than take that as an indication that perhaps Washington shouldn’t have an income tax, Senate Democrats have looked through their tea leaves and read that it’s time to wage a disinformation campaign.
Enter their favorite new tax, the capital gains income tax…or if you ask liberals, they’d call it just a capital gains tax. In order to obfuscate their intentions (which is to have a statewide income tax) Democrats are going to try to sell voters the myth that a tax on capital gains isn’t really an income tax, but an “excise” tax.
That simply isn’t true.
Just ask the Internal Revenue Service (IRS), every state revenue department in the country, or anyone familiar with tax policy. There is no debate, a capital gains tax is an income tax. This is directly from the leading tax authority in the country, the IRS: “You ask whether tax on capital gains is considered an excise tax or an income tax? It is an income tax. More specifically, capital gains are treated as income under the tax code and taxed as such.”
The Left’s end game is to ultimately use a capital gains income tax as a tool to have courts change their interpretation of what is allowed by our state’s constitution, which currently prohibits an income tax. This isn’t about putting more money into education or fixing our state’s mental health system (there is plenty of existing revenue to do both), this is simply a political game being played by Senate Democrats to enact the shared dream of Sawant and Seattle liberals: a statewide income tax.
Republicans believe that the truth matters; that’s why as of today our organization will be dropping “capital gains” altogether and simply refer to it as an income tax.
No other state calls capital gains an excise tax. The IRS views capital gains as an income tax. Common sense tells us profit derived from an investment is income. Why shouldn’t we match reality with our rhetoric?
Senate Democrats want an income tax, plain and simple.