Washington state approves capital gains tax

Post by jdonaldson » Fri, Apr 30, 2021, 9:09 PM UTC

rileywatkins wrote: post #178

jdonaldson wrote: post #124

Earlier quoted context omitted.

I'm not a fan of labelling tax code as "regressive" in this case. It hasn't moved "backwards", it's stayed the same. I also question the rationale behind giving our city and state more money... they haven't exactly exhibited forthright stewardship of existing tax resources. I have doubts that taking more capital gains taxes will be a net positive. This will in all likelihood negatively impact the region's yearly char…

I believe zacharycohn meant "regressive" as in "imposes a harsher burden on lower-income households than on households with higher incomes."[0] In this sense, Washington state does have a regressive tax system, in part thanks to 0% income tax and higher than average sales tax. [0] https://www.thebalance.com/regressive-tax-definition-history...

Post by [deleted] » Fri, Apr 30, 2021, 9:19 PM UTC

0xEFF wrote: post #76

cynicalkane wrote: post #31

Earlier quoted context omitted.

Real estate has a powerful lobby and many property owners are well-connected themselves. A lot of people own property and don't see it as free money. They empathize with property owners. Though it's easier money if you're politically connected and/or already wealthy. Stocks are held by rich people and techbros, in the minds of the public. Whether something is valuable or not valuable depends on who you empathize with…

> Really you should just tax income at high rates and investment at near-0%. Does this address taxes lost from people being paid in stock units?

Post by philwelch » Fri, Apr 30, 2021, 9:30 PM UTC

verst wrote: post #163

philwelch wrote: post #39

Earlier quoted context omitted.

These taxes always start off only affecting the richest of the rich, until the government decides it needs more revenue.

What if I told you that as an ordinary engineer I am perfectly OK with paying state income taxes and capital gains taxes here in Seattle? Why? For the benefit of all. I am not wealthy by any means given local expenses but I live comfortably. As someone who is better off than the majority of people (as are most of us on HN when compared to the people around us wherever it is we live) I feel it is important to invest i…

Post by bpodgursky » Fri, Apr 30, 2021, 9:49 PM UTC

grumpitron wrote: post #184

bpodgursky wrote: post #171

Earlier quoted context omitted.

That's the point! Inflation causes fake capital gains on held property, which then turns into a wealth tax if you ever try to exchange the asset for another one!

It does not turn into a wealth tax. A wealth tax is a tax on the entire value of the property. A capital gains tax is a tax on the gains. The only, extremely narrow situation in which they’re the same for a particular investment is when someone has a $0 cost basis on their investment. Runaway high inflation will have them trend closer to one another, but we don’t have that.

Post by tolbish » Fri, Apr 30, 2021, 9:56 PM UTC

BuyMyBitcoins wrote: post #41

verst wrote: post #16

Earlier quoted context omitted.

The first 250k in profits from capital gains are exempt. It is estimated that this tax only affects the 7000 richest individuals in Washington. Keep in mind we don't have any income taxes here.

“ It is estimated that this tax only affects the 7000 richest individuals in Washington.” Careful, that’s how it always starts. Give it a decade or so and politicians will be upset at how few people are actually paying this tax. They’ll demand all sorts of changes to the exemption structure so that they can raise more revenue. All while saying it’s only going to effect other people.