Washington Adjourns Legislature After Implementing 7% Capital Gains Tax, Adding $658 Million for Rental Assistance

 

Boosted by economic recovery, the Washington legislature adjourned its 105-day session after approving a $59-billion budget deal that increases taxes and boosts spending by more than $5 billion over the previous two-year cycle. 

The lawmakers added $10 billion in federal COVID-19 relief to help families and businesses recover from the pandemic and its economic fallout. The money will fund $1.7 billion to reopen schools and address learning loss and an additional $658 million for rental assistance. 

The state’s wealthiest residents will now pay a higher share of taxes, as state democratic leaders successfully pushed through a new 7% tax on capital gains of more than $250-thousand from the sale of stocks and other investments. 

The tax is expected to raise more than $400 million a year and face legal challenges.