Friends,

In their latest attempt to pass a state income tax, Democrats presented arguments in defense of their capital gains income tax before the Washington State Supreme Court yesterday.

As a brief background, Democrat lawmakers passed a state income tax on capital gains in 2021. Jay Inslee then signed his income tax into law.

Last year, Douglas County Superior Court Judge Brian Huber stuck down the tax as unconstitutional. He ruled that the tax is “properly characterized as an income tax” and not “an excise tax as argued by the State.” Therefore, the tax is not permitted under the state constitution.

Not to be deterred after decades of his party's never-ending efforts to impose a state income tax on the people of Washington, Democrat State Attorney General Bob Ferguson appealed the decision directly to the State Supreme Court.

During oral arguments, State Solicitor General Noah Purcell continued to push the Democrats’ partisan claim that the new tax is not on income, but is actually an excise tax. He said that if “a person generates income by engaging in a transaction does not mean that a tax on that transaction becomes an income tax or a property tax.”

Former Washington State Attorney General Rob McKenna instead referred the justices to the definition used by all taxing authorities in the United States, including every other state and the IRS. Under these authorities, capital gains are income and taxes on those earnings is an income tax.

It’s unclear – based on the reaction and the questions asked by the Justices – which way the ruling will go. What is clear that you cannot count on mainstream media outlets to give you unbiased coverage of an issue they agree with the Democrats on. But you can count on us.

Our efforts depend entirely on the regular contributions of everyday Washingtonians like you. Will you help us by donating $25, $50, or $100 today so we can stay in the fight?

The end of the month is approaching, and we need to meet our fundraising goal so we can keep our eyes on what the Democrats are doing. Consider helping our efforts today.

Thank you for your continued support,

The Shift WA team