A new campaign seeks to “save the yachts” and repeal Washington State’s recent capital gains tax. While its tongue-in-cheek snark may be hilarious or bothersome – depending on which side of the argument you are – it does raise some legit questions about the tax itself. Is it a good thing or a bad thing for our state?
Here are Five Fast Facts about “saving the yachts:”
- 💰 The Backdrop - Washington State is a reliably blue state, but it has one of the least progressive tax systems in the nation, meaning the tax burden was very light on the wealthy and much heavier on lower- and middle-income folks. Until 2021, that is…
- 🚢 Yacht Danger - …when a capital gains tax was implemented. At that point, Washington went to #2 on the least progressive scale, behind Florida. The capital gains tax applied an extra 7% tax on gains of more than $250k, outside of a few exceptions. Yachts are obviously a major target here.
- 📈 Rev It Up - In the first year of the new tax effects (2022), the state raked in almost $900 million in tax revenue, far more than expected. The first half billion went to education and child care programs, and the rest is marked for school construction. It’s hard to argue with that!
- 😍 Loving The Gains - Democrats love the capital gains tax, saying it helps move the tax burden more onto the wealthy who can better afford it. They also point to the 160k+ families across the state who got a $1255 tax credit last year.
- ✋ Just Say No - Republicans opposed the tax, saying that repealing it will benefit all Washington residents because the tax stifles the job creation – especially high tech jobs – that the state is known for, along with the huge money and prosperity it brings. And look at California - high income people are fleeing because the tax burden on the wealthy is huge.
🔥Bottom line: This brings us to the vote in the next election (this November). There’s an effort called Initiative 2109 that would repeal the capital gains law. Whether you want to save the yachts or torpedo them, it’s up to you, the people. Get informed on what it is, what will happen, and what you think about it. Then go make sure you vote!
What do you think about “saving the yachts?”
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