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Unique_Engineering_3 t1_jdlfi4u wrote

Reply to comment by [deleted] in Washington Supreme Court upholds new capital gains tax by Bozzooo

> Incredible short sightedness on your part. Washington has an $8B surplus. Why are we being taxed more exactly?

If you’re making $250k/yr+ in capital gains and have something tk worry about why are you wasting your time on Reddit arguing about it with people like me? 🤷‍♂️

I’m super flattered that one of the ≈1000 people in the state that have exposure to this tax has taken the time to care about me! 🤣

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barefootozark t1_jdpng0b wrote

> ’m super flattered that one of the ≈1000 people in the state that have exposure to this tax

An estimated 7,000 households — the wealthiest in the state — are estimated to be affected by the capital gains tax law, according to Invest in WA Now.

It's estimated to raise 500M/year. If your 1000 people is true (it's not) each would pay on average $500,000 of capital gain tax. $500,000 is 7% of $7,142,857. THAT's FANTASTIC!! Suggesting that there are 1000 people in WA that average $7.4M in capital gains every year is not even ball park close.

There are ~ 7000 household affected. Household include more than 1 person.

The original $25K/$50K theshold capital gains tax affected 58,000 households. We'll be there within 2 years.

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Unique_Engineering_3 t1_jdpqdbx wrote

Thank you for correcting me so I’m accurate.

It’s 1 in 1000 that are expects to pay, not 1000 people in total.

It was expected to be paid by 7,000 people — fewer than 1 in every 1,000 residents — and to bring in close to a half-billion dollars a year to help pay for public education in Washington, beginning this year.

So, 99.9% of the citizens of the state don’t have anything to worry about. Not even the guy I was responding to because he claimed to be nearing $250/yr as a couple—still less than 1/2 the limit for a couple.

Anyway, thank you for helping me to make sure I am precise and recognize that it is ≈0.1% of the population of the state with increased tax risk, not ≈0.000013% of the population.

And yes, I’m ignoring the “but the original number was…” comment that several responders seem quite fond of mentioning as if that was the actual law that got passed. I know “but could a been” and “but in the future” arguments are popular with some, but I’m trying to stay tethered in reality not imagination.

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barefootozark t1_jdproyk wrote

Sure, you can count all resident to make it look like the tax affects fewer people, but children don't pay taxes. Fewer than 1/2 of the citizens are taxpayers. Assuming that 7,000,000 state residents are taxpayers is absurd. It's probably closer to 3,000,000 taxpaying citizens.

So, it really closer to 0.2% of taxpayers will pay the cap gains tax with it at $250K, and it would have been closer to 2% of taxpayers if it was at 25/50K. If it gets lowered to 15K, 4% of taxpayers.

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Unique_Engineering_3 t1_jdprye5 wrote

> Sure, you can count all resident to make it look like the tax affects fewer people, but children don't pay taxes. Fewer than 1/2 of the citizens are taxpayers. Assuming that 7,000,000 state residents are taxpayers is absurd. It's probably closer to 3,000,000 taxpaying citizens.

> So, it really closer to 0.2% of taxpayers will pay the cap gains tax with it at $250K, and it would have been closer to 2% of taxpayers if it was at 25/50K. If it gets lowered to 15K, 4% of taxpayers.

That’s impressive, you just mentally pretzeled yourself into thinking instead of everybody and their dog but not the kids is going to be paying this tax!

I’m not even mad, that’s just damned impressive!

🤣😅😂😂🤣

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[deleted] t1_jdlfr5t wrote

[removed]

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Unique_Engineering_3 t1_jdlgxkc wrote

> I see you have tons of glib comments on here about this, it’s quite funny how you laugh at peoples opinions but never seem to answer questions.

> Must be nice to have nothing in this world to hold on to.

> That being. Said my wife and I do get close to the 250K in stock options a year. I’m not so worried about paying 7% on that, but I’d be more worried that they’d drop below that and now start working on income taxes. You of course, have a smooth brain and just post glib comments so we know you aren’t worried.

Your sad ad hominem commentary aside, it’s too bad you don’t have access to the internet.

If you did you would know that you’re still WAY BELOW the threshold despite doing great financially, u/Peanut09274.

“There are several deductions and exemptions available that may reduce the taxable amount of long-term gains, including an annual standard deduction of $250,000 per individual.”

So it looks like you’re going to need to more than double your tax exposure before you have to get your accountants and lawyers involved.

Edit to add:

You don’t have to worry about the $250k/yr EACH being less due to inflation because this limit is adjusted for inflation—and doesn’t include selling a family business.

“A standard deduction of $250,000 per year per individual, married couple, or domestic partnership. This amount is adjusted for inflation annually.”

“The long-term capital gain from an individual’s sale of all or substantially all of a qualified family-owned small business.”

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