barefootozark t1_jdpng0b wrote on March 26, 2023 at 5:02 AM

Reply to comment by Unique_Engineering_3 in Washington Supreme Court upholds new capital gains tax by Bozzooo

> ’m super flattered that one of the ≈1000 people in the state that have exposure to this tax

An estimated 7,000 households — the wealthiest in the state — are estimated to be affected by the capital gains tax law, according to Invest in WA Now.

It's estimated to raise 500M/year. If your 1000 people is true (it's not) each would pay on average $500,000 of capital gain tax. $500,000 is 7% of $7,142,857. THAT's FANTASTIC!! Suggesting that there are 1000 people in WA that average $7.4M in capital gains every year is not even ball park close.

There are ~ 7000 household affected. Household include more than 1 person.

The original $25K/$50K theshold capital gains tax affected 58,000 households. We'll be there within 2 years.

Unique_Engineering_3 t1_jdpqdbx wrote on March 26, 2023 at 5:36 AM

Thank you for correcting me so I’m accurate.

It’s 1 in 1000 that are expects to pay, not 1000 people in total.

It was expected to be paid by 7,000 people — fewer than 1 in every 1,000 residents — and to bring in close to a half-billion dollars a year to help pay for public education in Washington, beginning this year.

So, 99.9% of the citizens of the state don’t have anything to worry about. Not even the guy I was responding to because he claimed to be nearing $250/yr as a couple—still less than 1/2 the limit for a couple.

Anyway, thank you for helping me to make sure I am precise and recognize that it is ≈0.1% of the population of the state with increased tax risk, not ≈0.000013% of the population.

And yes, I’m ignoring the “but the original number was…” comment that several responders seem quite fond of mentioning as if that was the actual law that got passed. I know “but could a been” and “but in the future” arguments are popular with some, but I’m trying to stay tethered in reality not imagination.

barefootozark t1_jdproyk wrote on March 26, 2023 at 5:52 AM

Sure, you can count all resident to make it look like the tax affects fewer people, but children don't pay taxes. Fewer than 1/2 of the citizens are taxpayers. Assuming that 7,000,000 state residents are taxpayers is absurd. It's probably closer to 3,000,000 taxpaying citizens.

So, it really closer to 0.2% of taxpayers will pay the cap gains tax with it at $250K, and it would have been closer to 2% of taxpayers if it was at 25/50K. If it gets lowered to 15K, 4% of taxpayers.

Unique_Engineering_3 t1_jdprye5 wrote on March 26, 2023 at 5:56 AM

> Sure, you can count all resident to make it look like the tax affects fewer people, but children don't pay taxes. Fewer than 1/2 of the citizens are taxpayers. Assuming that 7,000,000 state residents are taxpayers is absurd. It's probably closer to 3,000,000 taxpaying citizens.

> So, it really closer to 0.2% of taxpayers will pay the cap gains tax with it at $250K, and it would have been closer to 2% of taxpayers if it was at 25/50K. If it gets lowered to 15K, 4% of taxpayers.

That’s impressive, you just mentally pretzeled yourself into thinking instead of everybody and their dog but not the kids is going to be paying this tax!

I’m not even mad, that’s just damned impressive!

🤣😅😂😂🤣