Letter to the Editor: Let’s Get Real on Capital Gains Income Tax

Posted

I write to inject a shot of realism into the new capital gains income tax. Who do you think this will affect? It is high time that the ultra-wealthy of Washington state pay their fair share. 

Let's look at the facts: This tax applies only to profits from capital gains over $250,000. This new tax will affect about 7,000 individuals in Washington state. How many do you suppose are in Lewis County when King County has many millionaires and billionaires? 

Here are the exemptions:

• Real estate

• Interests in a privately-held entity to the extent that the capital gain or loss from such sale or exchange is directly attributable to the real estate owned directly by such entity

• Assets held in certain retirement accounts

• Assets subject to condemnation, or sold or exchanged under imminent threat of condemnation

• Certain livestock related to farming or ranching. Assets used in a trade or business to the extent those assets are depreciable under Title 26 U.S.C. Sec. 167(a)(1) of the internal revenue code or qualify for expensing under Title 26 U.S.C. Sec. 179 of the internal revenue code



• Timber, timberlands and dividends and distributions from real estate investment trusts derived from gains from the sale or exchange of timber or timberlands

• Commercial fishing privileges

• Goodwill received from the sale of a franchised auto dealership

So if you are making more than $250,000 on capital gains from investments not on the exemption list, you need to pay your fair share. 

You are wealthier than 7,732,000 Washingtonians.

 

Katherine L. Ford 

Centralia