Credit to Washington Policy Center analyst Jason Mercier for pointing to this three-minute legal tip on the stater’s legally-challenged capital gains tax. University of Washington law professor Scott Schumacher lays out the provisions of the controversial new tax and discusses its likely legal prospects.
Asked if the capital gains tax will pave the way for a Washington state income tax, Schumacher responds,
“I don’t think so. To the extent that this is an income tax, and I think it is, it’s going to be found unconstitutional.”
More on this and the capital gains tax generally in the three-minute video. It’s well worth your time.
Mercier also writes,
These comments from a tax law professor calling a capital gains tax an income tax aren’t a surprise. From the IRS, to every other state in the country, to tax professionals across the world, the analysis is the same: A capital gains tax is an income tax.