4 ms·

It's more like the 7000 highest filers in any given year. The richest people may not be realizing capital gains. It's likely to affect people who happen to be s

It's more like the 7000 highest filers in any given year. The richest people may not be realizing capital gains. It's likely to affect people who happen to be selling their businesses that year, probably the only year they would ever fall into that group. It makes creating such a business and selling it while living in the state less attractive. Have to move to Texas before you sell?

verst 5y ago
It won't affect most businesses however. Only those with $10M in revenue in the year preceding the sale. > Business owners are exempt from the tax if they were regularly involved in running the business for five of the previous 10 years before they sell, own it for at least five years, and gross $10 million or less a year before the sale. Source: https://apnews.com/article/business-government-and-politics-washington-personal-taxes-legislature-47fa90123a7732de00243ac8cb11c4d8 https://apnews.com/article/business-government-and-politics-... Or legal source: http://lawfilesext.leg.wa.gov/biennium/2021-22/Pdf/Bills/Senate%20Passed%20Legislature/5096-S.PL.pdf?q=20210430122559 http://lawfilesext.leg.wa.gov/biennium/2021-22/Pdf/Bills/Sen... See Section 8, (2)(d)(iii)
- seattle_spring 5y ago
  In other words, the rich founders get richer while the early employees continue to get screwed.
harshalizee 5y ago
That's completely nonsensical. I'm in Washington. I sold my options from my startup that was basically all profit last year and it was greater than 250k. Under this law, I would have coughed up 7% more in taxes. I'm not even remotely a highly paid dev. I just got lucky after years of being underpaid. This will affect way more people than just 7000 individuals.
- syshum 5y ago
  The government always has to push the narrative that their tax increases will be on "them" the others, the people better off then you, not you. No no we will never increase YOUR taxes, we are only taxing "them" the ones that sleep on money and keep you down by not paying their "fair share" Of course when the tax bill actually comes many people are often shocked they are included in "them"
- imtringued 5y ago
  If it were easy to generate the necessary inflation to avoid laws like this then nobody would have bothered with a capital gains tax increase or even with the idea of a wealth tax. Yes, the number of options are decreasing day by day...
- mattmcknight 5y ago
  Agree, it would be more than 7000. I was just reacting to the the claim that it would affect the "most wealthy" which is not what an income tax targets.

verst 5y ago

It won't affect most businesses however. Only those with $10M in revenue in the year preceding the sale. > Business owners are exempt from the tax if they were regularly involved in running the business for five of the previous 10 years before they sell, own it for at least five years, and gross $10 million or less a year before the sale. Source: https://apnews.com/article/business-government-and-politics-washington-personal-taxes-legislature-47fa90123a7732de00243ac8cb11c4d8 https://apnews.com/article/business-government-and-politics-... Or legal source: http://lawfilesext.leg.wa.gov/biennium/2021-22/Pdf/Bills/Senate%20Passed%20Legislature/5096-S.PL.pdf?q=20210430122559 http://lawfilesext.leg.wa.gov/biennium/2021-22/Pdf/Bills/Sen... See Section 8, (2)(d)(iii)

seattle_spring 5y ago
In other words, the rich founders get richer while the early employees continue to get screwed.

harshalizee 5y ago

That's completely nonsensical. I'm in Washington. I sold my options from my startup that was basically all profit last year and it was greater than 250k. Under this law, I would have coughed up 7% more in taxes. I'm not even remotely a highly paid dev. I just got lucky after years of being underpaid. This will affect way more people than just 7000 individuals.

syshum 5y ago
The government always has to push the narrative that their tax increases will be on "them" the others, the people better off then you, not you. No no we will never increase YOUR taxes, we are only taxing "them" the ones that sleep on money and keep you down by not paying their "fair share" Of course when the tax bill actually comes many people are often shocked they are included in "them"
imtringued 5y ago
If it were easy to generate the necessary inflation to avoid laws like this then nobody would have bothered with a capital gains tax increase or even with the idea of a wealth tax. Yes, the number of options are decreasing day by day...
mattmcknight 5y ago
Agree, it would be more than 7000. I was just reacting to the the claim that it would affect the "most wealthy" which is not what an income tax targets.