Capital Gains Tax Likely Proposed in WA 2021 Legislative Session
If submitted, such a bill would likely trigger a lawsuit which could end up determining whether income is considered property.
House Democrat Noel Frame is the chairman of the State Tax Structure Work Group, she plans to submit a report to the legislature next month on possible changes to the state's tax codes. In past sessions, she has submitted bills that would create a capital gains tax.
Apparently the legislature is also considering replacing the Business and Occupation Tax with a corporate income tax, but the rate would be so high it would be a big obstacle to get over.
IF a personal income tax as well as corporate income tax were implemented, at a rate of 4.75 percent, it would generate over $24 billion in revenue, and allow the state to eliminate both the state property tax and B&O tax entirely.
However, the prospect of a personal income and corporate income tax are big enough to potentially drive not only companies but citizens out of the state, lessening the incoming revenue.
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