The Columbian: Vote No On I-2109

The Columbian editorial board is urging voters to reject I-2109, writing:

In 2023, the capital gains tax was paid by fewer than 4,000 people in Washington and generated nearly $900 million — 85 percent of it from King County residents. The Office of Financial Management estimates that repeal of the tax would reduce state revenue by $2.2 billion over five years.

That money is dedicated to K-12 education, higher education, early learning and child care. In particular, it is being used to help with school construction, especially in rural and low-income districts that have difficulty getting bond measures approved.

Critics argue that the capital gains tax is an income tax, that its volatility makes it an unreliable revenue source and that it will lead investors to leave the state. These are reasonable assertions, but they are outweighed by the benefits of the tax.

Washington has an especially regressive tax system. It also has a school-funding system that can exacerbate inequities between districts. The capital gains tax is a reasonable method for mitigating those problems and aiding a large segment of our population.