The Seattle Times editorial board recommends: Vote ‘no’ on Initiative 2109

By The Seattle Times editorial board

Washington voters should reject Initiative 2109 on the November ballot. A “no” vote would mean the capital gains tax remains in place.

Child care and preschools not only give children a strong foundation, they help boost the economy by allowing both parents to work while their children are in a safe learning environment. Quality child care is also good for businesses as it cuts down on employee absences.

The capital gains tax revenue goes to fund the Education Legacy Trust Account, which supports child care, preschools, special education, and community and technical colleges. Currently, 4,282 out of the state’s 6,022 licensed day care and preschool providers received at least one subsidy payment generated by the tax.

Among them is Diana Llanes, whose home-based day care and separate preschool facility serves about 32 children. About 70% of the children’s costs are paid for by capital gains tax revenue. Should the tax be repealed, many of the children at Once Upon A Time child care center and ELBA (Early Learning Bilingual Academy) preschool in Burien won’t be able to attend. In addition, Llanes said she likely would be forced to lay off some of her staffers.

Any revenue collected above $500 million per year from the capital gains tax would be dedicated to the Common School Construction Account. That fund helps school districts with construction projects that they otherwise couldn’t afford, especially poorer and rural districts.

One argument made by some who want to repeal the tax is that 7% is too much for the wealthy to pay. Let’s do the math: If a person made $300,000 in a stock transaction in 2023, they would pay roughly $2,660 — 7% of the $38,000 above $262,000 — to support early learning.

Another argument is that the ultra wealthy will leave the state to avoid paying the 7% tax. Those who oppose the tax have yet to prove that claim.

Besides, wealthy people choose to live here for many reasons, such as family commitments, careers, outdoors recreation, the political climate and the focus on a clean environment.

As voters mark their ballots in the coming weeks, they should put preserving Washington’s future above preserving millionaires’ fortunes. A “no” vote on Initiative 2109 is a “yes” for Washington families.

Read the full editorial in The Seattle Times.