It doesnât take a numbers whiz to know our tax system is regressive. The absence of a state income tax disproportionately burdens Washington residents with lower incomes. Local lawmakers have tried to mitigate wealth inequality for years by levying investments instead of salaries, a more politically fraught financial realm. But it took until now for them to finally make the stateâs revenue department a little fairer.Â
Starting on January 1, 2022, Washingtonians will pay a 7 percent tax on the sale of stocks, bonds, and other assetsÂ
that net them more than $250,000 in a single year. Only an estimated 7,000 locals will have to cough up this cashâyour average GameStop trader doesnât come close to raking in a quarter-milâbut the collective contribution of those 7,000 adds up to more than $400 million annually for the state, much of which is earmarked for education. Our gain, in other words.Â