The New York Stock Exchange (NYSE) stands in lower Manhattan on March 09, 2021, in New York City. (Photo by Spencer Platt/Getty Images)
Washington state is famous for taxing low-income people at a higher rate than rich people – and it’s because we rely on a flat sales tax instead of a graduated income tax.
But now, the state legislature – by a near unanimous bipartisan vote – has approved a tax rebate for about 420,000 residents as a way of making the system a little more fair for families with incomes less than about $57,000. They would get a tax rebate of up to $1,200 a year.
And this got support not just from Democrats, who have wanted this for a long time, but also from most Republicans. Why? Because Republicans like lower taxes! And giving people a rebate is like lowering their taxes. So there it is: bipartisan agreement on tax fairness.
But $1,200 is not going to lift a family out of poverty, which is why Democrats still plan to take this to the next level.
They still want a capital gains tax to equalize things even further. For stockholders who cash in, that tax would take 7% of their annual gains — but the first quarter of a million dollars is exempt. As in zero tax below a quarter of a million dollars.
That sounds like a pretty high exemption to me, but judging from all the complaints about this idea, all I can conclude is that a lot of you are expecting to have to pay it.
And all I can say to that is – could you share some of your stock picks?
I have owned stock since my parents gave me 12 shares of AT&T for my 12th birthday. I would LOVE to be able to cash in on more than a quarter of a million dollars in capital gains in a single year. Even if it DID mean paying 7% to the state.
And I know it enrages some of you that I would support such a thing, and you can scold me for it, but when you write, just please include the stock picks that made you rich – because, frankly, I’d be more likely to read your email.
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