These community leaders in Central WA say revenue from capital gains tax is needed

We are community leaders in Wenatchee who have come together from different backgrounds united in the belief that Washington needs a fairer tax code. As signers of an amicus brief in support of a capital gains tax that was passed last year by the State Legislature, we believe that the new law is not only legal, but revenue from the capital gains tax is necessary for Eastern Washington’s future, the health of our communities, and our economic prosperity.

Our state needs the capital gains tax because our tax code isn’t fair as written. We lead in so many other sectors, like agriculture, technology, and aerospace. Yet when it comes to how we collect taxes, we are dead last. In fact, Washington has been recognized for decades as having the most regressive tax code in the nation. Everyday working families pay up to 17% of our income in state and local taxes, while the wealthiest Washingtonians pay less than 3%.

Our tax code isn’t just unfair, it’s bad for our economy. By shouldering the biggest share of the state budget, low- and middle-income families feel the greatest impact and have less in their wallets and bank accounts.

We think it’s past time that those who do well in Washington do right by Washington and pay their fair share of taxes. After all, everyone who has built wealth here has benefited from public investments and infrastructure, like our schools, parks, health care system, roads and bridges.

The capital gains tax is an important step in fixing our tax code. First, by asking those who should pay more to contribute their share, our system becomes more equitable. It takes some of the impact off of low- and middle-income earners and fairly shifts it to the exceptionally wealthy. Second, only a small number of Washingtonians, less than 1%, will be impacted by the tax. In Eastern Washington, it is estimated only 838 households will pay it. Most importantly, revenue from the tax — over $400 million per year — will be invested in childcare, early learning, and public education.

As parents, grandparents, and educators, we see the value of affordable childcare and how it allows parents to get back to work and provides safe environments for their children. We know firsthand the benefits of early learning programs and how they can shape a child’s future by increasing literacy and graduation rates. We understand that well-funded schools are the best way to support students and make investments in a community, especially rural ones like ours. We know what positive outcomes result when we provide our youth with opportunities to attend technical colleges or universities.

No matter what they look like or where they were born, every child in the Wenatchee Valley and across the state will feel a meaningful impact of this investment.

The capital gains tax will leave a profound legacy for these students and future generations: a fairer tax code, a sounder economy, stronger communities, and more educational opportunities.