This explainer presents both sides based on the measure's text. It does not recommend a vote.
Plain English Summary
This measure would eliminate Washington state's tax on profits from selling certain investments like stocks and bonds. The tax currently applies to profits over $250,000 per year and affects only high-income earners.
If YES
The 7% tax on capital gains over $250,000 would be eliminated
confidence: high
High-income investors would no longer pay this tax on investment profits
confidence: high
State revenue from this tax source would end, reducing funding for education and childcare programs
confidence: high
Washington would have one fewer tax that primarily affects wealthy residents
confidence: high
If NO
The capital gains tax would remain in place at 7% on profits over $250,000
confidence: high
Continued tax revenue would support education and childcare programs
confidence: high
High-income earners would continue paying the tax on large investment profits
confidence: high
The state would maintain this revenue source for public services
confidence: high
Financial impact
Eliminating the capital gains tax would reduce state revenue by hundreds of millions of dollars annually that currently funds education and childcare programs.
TL;DR
This measure would eliminate Washington's 7% tax on large investment profits over $250,000 per year.
Limitations
Based on measure title only — full text analysis may reveal additional details
Arguments For and Against
Arguments For
Supporters argue the capital gains tax was unconstitutional and unfairly targets investment income, discouraging entrepreneurship and economic growth.— Let's Go Washington
Proponents contend the tax could eventually be expanded to affect more taxpayers and sets a precedent for an income tax in a state that has never had one.
Arguments Against
Opponents argue repealing the tax would eliminate over $900 million in annual revenue dedicated to education and childcare for working families.— No on 2109 campaign
Critics contend the tax only affected roughly 4,000 of the wealthiest Washingtonians and was one of the few progressive revenue sources in a regressive tax system.— Washington State Budget & Policy Center