SEATTLE (AP) — A lawsuit has been filed seeking to block the new capital gains tax on high-profit stocks, bonds and other assets that the Washington Legislature approved this week. KUOW reports the conservative Freedom Foundation filed the lawsuit Wednesday on behalf of five individuals and one couple. The legal action in Douglas County, Washington, says the 7 percent tax on gains above $250,000 is an unconstitutional income tax. According to the lawsuit, all of the plaintiffs own capital assets and would potentially be subject to the tax. Supporters of the capital gains tax have said it’s an excise tax, not an income tax, and say that by taxing the state’s wealthiest residents it will make Washington’s tax code less regressive.
Lawsuit filed to block new Washington capital gains tax
