Letters: Letter on Capital Gains Tax Not So Hot; Centralia Schools Need Change at Top

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Letter on Capital Gains Tax Not So Hot

Here we are with temperatures in the 90s and Ruth Peterson, Sen. John Braun’s legislative assistant, is giving us a snowjob. 

In a letter, she claims that a proposed capital gains tax will hurt more than just the wealthy. She provides the example of a contractor who sells a few rental homes to help pay expenses after retiring. But the Senate’s proposal would apply a 7 percent capital gains tax to only the top 0.1 percent of the state’s residents, or about 7,500 residents.

 And it would apply only to gains over $250,000 for individuals or $500,000 for couples, according to The Seattle Times. The operative word here is “over” $250,000 and $500,000. So a couple who sold a $600,000 rental home would pay only a $7,000 capital gains tax. They would still have $593,000 left to play with.

The House proposal calls for a 5 percent tax that would affect only the top 0.5 percent of residents, or about 32,000 people. It would apply to capital gains above $25,000 for individuals and $50,000 for couples, according to the Times. So once again, a couple who sold a $100,000 rental property would pay a mere $2,500, leaving them with $97,500 to play with.

If the House proposal had been in effect 2007-12, fewer than 3 percent of households making less than $250,000 per year would have paid a cent, according to Rep. Laurie Jinkins, D-Tacoma. 

Retirement accounts and the sale of primary residences are exempt. Peterson left out the part about the capital gains tax primarily affecting income from profits generated by the sale of financial assets like hedge funds and high-end investment partnerships, individually owned corporate stocks, bonds and mutual funds.

Peterson claims that a farmer who sold his property to help pay for his retirement would be hit with a capital gains tax. But agricultural land is exempt under the capital-gains-tax proposals. 

Under Washington’s tax system, our poorest families pay up to seven times more of their income in taxes than the wealthiest 5 percent – a system that nonpartisan groups have identified as the most unfair in the nation, according to Jinkins. 

The only other option would be to increase property taxes, which would hit homes and businesses the hardest. 

Forty-one other states already have a capital gains tax. California has a 13.3 percent capital gains tax. Oregon collects 9.9 percent and Idaho collects 7.4 percent.

Don’t you be fooled. Republicans always try to redistribute wealth from the poor and middle class to the wealthy. Senate Republicans actually want to give about $116 million more in tax cuts to millionaires and big corporations, including tax breaks for high-tech corporations, food processors and aluminum smelters, such as Microsoft, ConAgra and Alcoa, according to Jinkins. 

The capital gains tax is intended to strengthen the middle class by asking the wealthiest few to pay their fair share. Republican president Teddy Roosevelt advocated for the wealthiest Americans and corporations to pay their fair share.

The capital gains tax is a win-win for the middle class. 



Chuck Haunreiter

Chehalis

 

Centralia Schools Need Change at Top

Our Centralia School District needs a change.

Over the last few years, I have read with dismay the various reports of the Centralia School District’s inattentive leadership team.

Salary errors went unnoticed for too long, costing the district nearly a quarter of a million dollars. Full-day kindergarten for needy children was closed down while the board approved expensive new union contracts. Most recently the Medicaid fraud investigation report found a lack of oversight, which resulted in a $372,000 repayment to the state.

Even if these mistakes are not going to be repeated, our district leaders still have not demonstrated any leadership for improving the district. For too many years, the district school board has been treading water rather than working on solving any of the issues that might improve our schools.

In the last school board election, two of the incumbent school board members were voted out of office. This year, three more incumbents are on the ballot, and all are challenged.

I was pleased this week to have one of the challenger candidates, Jami Lund, actually come to my door to offer a vision for the district that looks promising. That someone of his quality is willing to step up to help shape our schools is very encouraging.

I hope the other challenger candidates also share his enthusiasm and optimism for moving the district into a future of which we can all be proud. Perhaps in November we will complete the change of the leadership team, and the students, parents and taxpayers of the district can see progress. 

Colleen Morse

Centralia