There are several issues with this tax. First, the ultra-rich won't pay it. They'll take out loans against their stock instead of selling it. Second: The 14th

There are several issues with this tax. First, the ultra-rich won't pay it. They'll take out loans against their stock instead of selling it. Second: The 14th amendment to the state constitution[1] says: > All taxes shall be uniform upon the same class of property within the territorial limits of the authority levying the tax and shall be levied and collected for public purposes only. The word "property" as used herein shall mean and include everything, whether tangible or intangible, subject to ownership. This bans any sort of graduated tax. The state supreme court has upheld this in the past.[2] If the legislature wants to make a graduated tax on capital gains, they'll have to amend the constitution. Third: This tax is counterproductive. If you tax something, you get less of it. Tax cigarettes and people smoke less. Tax alcohol and people drink less. Tax gasoline and people burn less gas. Tax gambling and people gamble less. And if you tax capital gains, then people invest less. If you're going to tax something, tax bad or neutral things, not good things. This tax won't ruin the state's economy, but it certainly won't help economic growth. 1. https://leg.wa.gov/CodeReviser/RCWArchive/Documents/2019/WA%20Constitution.pdf https://leg.wa.gov/CodeReviser/RCWArchive/Documents/2019/WA%... (Amendment 14 is on page 59) 2. http://courts.mrsc.org/supreme/039wn2d/039wn2d0191.htm http://courts.mrsc.org/supreme/039wn2d/039wn2d0191.htm