Washington's capital gains tax collects $850 million, over three times the estimates
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https://www.king5.com/amp/article/money/washingtons-capital-gains-tax/281-3fe9d8c3-7f89-46a5-ae91-e148a7f31c72
https://www.king5.com/amp/article/money/washingtons-capital-gains-tax/281-3fe9d8c3-7f89-46a5-ae91-e148a7f31c72
I would be fine if there was a mandatory 5 year holding period before you could get a light tax break. It is smart to incentivize investment activities.
There is. Capital gains taxes are broken into two categories - short term and long term. But stocks transition to long term after only six months and the tax brackets are better than that for normal income.
6 months is nothing though, just two quarters. It still incentivizes CEOs to make short term decisions. 5 years is a decent time frame that I think would make CEOs rethink the quarterly mentality.
Yeah, I dislike the simplification that brings it down to just two sets of brackets. It really just needs to be an easily tuneable continuous function of profits and time. If you make a fuckton of profit, you'll pay a fuckton of tax. If you wait longer, you pay less tax. If the profit is small enough, guess what? No tax. So the middle class day traders wont lose their ass and they can have some fun. But the whales are going to have to fear Captain Tax Man Ahab, regardless of if they wait 6 months or not.
But I dont make the laws. Wallstreet does.
That means a total sale of over $12B in assets by 3190 people (and expected to increase with 2500 that haven’t filed yet); ~ $3.8M each. Crazy for just WA state.
So is this total sales for the year exceeding $250k or a single transaction. My guess is the total for the year but the article doesn't specify.
It is an annual tax if you create capital gains every year.
The measure passed in 2021 imposed a 7% tax on the sale of stocks, bonds and other high-end assets in excess of $250,000 for both individuals and couples.
The tax took effect Jan. 1, 2022. First payments are due on or before April 18.
and
Retirement accounts, real estate, farms and forestry were all exempt from the tax. Business owners were also exempt from the tax if they are 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.
and
Under the new law, taxpayers could deduct up to $100,000 a year from their capital gains if they made more than $250,000 in charitable donations in the same tax year, something Huber cited in his ruling, noting that like “an income tax and unlike an excise tax, the new tax statute includes a deduction for certain charitable donations the taxpayer has made during the tax year.”
is all from an article linked from the article.