Unique_Engineering_3 t1_jdmgwgv wrote on March 25, 2023 at 2:23 PM

Reply to comment by Jetlaggedz8 in Washington Supreme Court upholds new capital gains tax by Bozzooo

I saw that people that have FEDERAL capital gains exposure submit information.

You’ll have to point out not the volume of times that “capital gains” is mentioned but the nexus between your linked bill and the lowering of the STATE capital gains limit that is being discussed.

I’m happy to let you be the smart guy here, please show me in the bill where your allegation is supported. As it is right now it simply looks like you’re conflating two separate issues. Please, prove me wrong.

Jetlaggedz8 t1_jdmk5yv wrote on March 25, 2023 at 2:48 PM

The original bill that imposes the state excise tax on capital gains which you support uses the same language. "Federal" is used extensively. https://app.leg.wa.gov/billsummary?BillNumber=5096&Initiative=false&Year=2021

The state imposes its capital gains tax using the amount of capital gains reported on the federal income tax return. The state then allows certain additional deductions or exclusions. That's why there are references to the federal capital gains tax, it's the starting point for computing whether you need to file a state return.

Your proof is right here: NEW SECTION. Sec. 309. PERSONS REQUIRED TO FILE A STATE RETURN. 33 (1) Only individual and joint taxpayers with federal net long-term 34 capital gains or net earnings from self-employment of sole 35 proprietors in excess of $15,000 on their federal tax return are 36 required to file a capital gains tax return with the department.

The capital gains tax return is the WA state excise tax return, and the Department is the WA state Department of Revenue. The WA State legislature has no authority over federal capital gains taxes.

This draft bill lowers the threshold from $250K to $15K.

Unique_Engineering_3 t1_jdmkwsg wrote on March 25, 2023 at 2:53 PM

> The original bill that imposes the state excise tax on capital gains which you support uses the same language. "Federal" is used extensively. https://app.leg.wa.gov/billsummary?BillNumber=5096&Initiative=false&Year=2021

> The state imposes its capital gains tax using the amount of capital gains reported on the federal income tax return. The state then allows certain additional deductions or exclusions. That's why there are references to the federal capital gains tax, it's the starting point for computing whether you need to file a state return.

> Your proof is right here: NEW SECTION. Sec. 309. PERSONS REQUIRED TO FILE A STATE RETURN. 33 (1) Only individual and joint taxpayers with federal net long-term 34 capital gains or net earnings from self-employment of sole 35 proprietors in excess of $15,000 on their federal tax return are 36 required to file a capital gains tax return with the department.

> The capital gains tax return is the WA state excise tax return, and the Department is the WA state Department of Revenue. The WA State legislature has no authority over federal capital gains taxes.

> This draft bill lowers the threshold from $250K to $15K.

You’re conflating two different issues:

The state capital gains that was just upheld by the SC of WA. And
The proposed health care accounts that get funding through wages—and yes, capital gains are factored into the liability for how much that income level is.

To be clear:

Your allegation that the capital gains tax is being lowered to the point that regular citizens in WA have to worry about it is not supported by your pasted section.