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Capital gains income tax lawsuit FACT CHECK

Attorney General files response to capital gains income tax lawsuit

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Community Transit budget workshop

Snohomish County, Wash.  The Community Transit Board of Directors will discuss the proposed 2022 Community Transit budget on Thursday, October 28 at 3 p.m.

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Fire Levy Lid Lift

SRFR will be holding three public meeting to explain the ballot measure.

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Snohomish County Expands Use of Electric Vehicles

Benefits of using an electric yard goat vehicle help celebrate Energy Efficiency Day

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Emergency Declarations

ONeill Institute for National and Global Health Law: Its Time to Reconsider State of Emergency Declarations for Sustained Crises

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Bellevue developer fined $280,000

Bellevue developer fined $280,000 for multiple dangerous waste violations at downtown site

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Patriotism is alive in Snohomish

The students at the Academy of Snohomish, a private school, have demonstrated their compassion with a tribute to those lost on 9/11.

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Published:2021-11-09 State Print Snohomish Times
Capital gains income tax lawsuit FACT CHECK

By Jason Mercier
Nov 9, 2021 

Last month the Attorney General filed a response to the capital gains income tax lawsuit. The trial date for this case is scheduled for February 4, 2022. There were a couple of interesting statements from the Attorney General’s brief. Below is a quick compare and contrast of the statements from the Attorney General and the facts about capital gains income taxes.

Attorney General:

“Defendants deny the assertion that ESSB 5096 imposes an income tax, and deny that Plaintiffs’ understanding of information provided by the Internal Revenue Service as it pertains to the distinction between an income tax and an excise tax is complete or accurate."

Internal Revenue Service:

“This is in response to your inquiry regarding the tax treatment of capital gains. You ask whether tax on capital gains is considered an excise tax or an income tax? It is an income tax. More specifically, capital gains are treated as income under the tax code and taxed as such."

Attorney General:

"Defendants deny the assertion that ESSB 5096 imposes an income tax, and deny that Plaintiffs’ understanding of information purportedly obtained from the Congressional Budget Office as it pertains to the distinction between an income tax and an excise tax"

Congressional Budget Office:

Capital Income Taxes - Capital income taxes are taxes on the return on investment . . . The individual income tax combines a tax on labor income and a tax on capital income, such as interest, dividends, capital gains, and certain business profits. The corporate income tax and estate tax also apply a tax to capital income . . . Individual and corporate income taxes affect both labor and capital income. Excise taxes are consumption taxes on specific goods.”

Attorney General:

“Defendants deny the assertion that ESSB 5096 imposes an income tax, and deny that Plaintiffs’ understanding of information purportedly obtained from state revenue departments as it pertains to the distinction between an income tax and an excise tax is complete or accurate.”

50 state capital gains tax survey of state revenue directors:

All state revenue departments describe capital gains as income. Those that tax capital gains do so via their income tax codes. No state taxes capital gains as an excise tax. Here are direct quotes from each state revenue department on how they treat capital gains income.

Understandably the Attorney General has a tough job defending political talking points that aren’t backed up by any tax professional in the world. That said, it is disappointing to see the state’s top attorney denying basic tax facts that are universally acknowledged across the country about capital gains income taxes.


Capital gains income tax lawsuit FACT CHECK Capital gains income tax lawsuit FACT CHECK
2021-11-09
Attorney General files response to capital gains income tax lawsuit
Community Transit budget workshop Community Transit budget workshop
2021-10-25
Snohomish County, Wash.  The Community Transit Board of Directors will discuss the proposed 2022 Community Transit budget on Thursday, October 28 at 3 p.m.
Fire Levy Lid Lift Fire Levy Lid Lift
2021-10-08
SRFR will be holding three public meeting to explain the ballot measure.
Snohomish County Expands Use of Electric Vehicles Snohomish County Expands Use of Electric Vehicles
2021-10-06
Benefits of using an electric yard goat vehicle help celebrate Energy Efficiency Day
Emergency Declarations Emergency Declarations
2021-09-21
ONeill Institute for National and Global Health Law: Its Time to Reconsider State of Emergency Declarations for Sustained Crises
Bellevue developer fined $280,000 Bellevue developer fined $280,000
2021-09-21
Bellevue developer fined $280,000 for multiple dangerous waste violations at downtown site
Patriotism is alive in Snohomish Patriotism is alive in Snohomish
2021-09-11
The students at the Academy of Snohomish, a private school, have demonstrated their compassion with a tribute to those lost on 9/11.
Make that seven WA cities with local income tax ban Make that seven WA cities with local income tax ban
2021-09-09
Turns out the number of Washington cities with a local income tax ban is now up to seven.
Seattle scores a weekend of construction and sports Seattle scores a weekend of construction and sports
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Three different closures bring delays, require fans a plan to get to/from Sounders and Mariners games
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Today in America we face a choice, between the freedom that we were granted by our creator or medical tyranny being handed down from unelected bureaucrats and run away politicians...all in the name of safety

McDaniels

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