DORI MONSON

Washington Rep: Capital gains tax is just ‘parity in the tax code’

Mar 22, 2021, 11:45 AM | Updated: 11:49 am

Olympia, legislative session, inslee covid, capital gains tax, unemployed...

The Capitol Building in Olympia. (AP Photo/Ted S. Warren, File)

(AP Photo/Ted S. Warren, File)

The big debate regarding a capital gains tax continues in Olympia, with some critics arguing that it’s an income tax, which potentially means court challenges ahead. Democratic Representative Noel Frame joined the Dori Monson Show to debate Dori on the reasoning behind the effort and how she believes it differentiates from an income tax.

“We’re having a conversation about a capital gains tax, which in Washington state law is considered an excise tax. What I think a good comparison is we talk about different types of property in Washington state. When you sell your house, which is real property, you pay a real estate excise tax,” she said.

“When you sell a capital asset like a financial intangible asset, like a stock or a bond, right now, you pay 0% on that sale. This capital gains tax, that is the transaction on that sale that is very comparable to the real estate excise tax that middle class people already pay on their one asset of wealth, their home. So it’s just, again, parity in the tax code,” she continued. “And so we really do believe it is an excise tax.”

Former Washington AG: Proposed capital gains tax is income tax in disguise

As Dori argued, the question of whether a capital gains tax is an income tax was posed by a state representative to the IRS, and they responded: “You ask whether tax on capital gains is considered an excise tax or an income tax. It is an income tax,” Dori read.

“The IRS does not control and dictate what state tax law is, and as a state tax law it is an excise tax,” Rep. Frame responded. “So, Dori, this is something that is going to be fought over in the courts, I have no doubt. But right now, you’re talking about a tax that will affect literally less than 1% of Washingtonians, 0.23% actually.”

Business owner who left Seattle for Arizona was ‘sick and tired of being sick and tired’

“And we think it is a key tool of reform to the tax code to have some of the wealthiest Washingtonians really, again, pay their fair share,” Frame said. “And hopefully, as you’ll see, we actually put in the bill that some of these funds go toward the working families tax credit, a great bipartisan piece of legislation that we’ve already passed out of the House, House Bill 1297. Some of these funds will go toward that tax credit for working families. So we really think it’s a key tool of reform.”

Listen to the Dori Monson Show weekday afternoons from noon – 3 p.m. on KIRO Radio, 97.3 FM. Subscribe to the podcast here.

Dori Monson Show

Dori Monson

Dori Monson stage show...

MyNorthwest Staff

Watch: Dori Monson’s ‘What are the Odds?’ stage show

In 2019, Dori Monson hosted a stage show - 'What are the Odds?' - which introduced you to the people who helped shape his improbable career.

1 year ago

Dori Monson welcomes the Moose back to KIRO. Follow @http://twitter.com/Mynorthwest...

MyNorthwest Staff

A collection of the all-time best Dori Monson stories

With the passing of Dori Monson, a collection of some of his top stories to remember all the hard work Dori brought to Seattle.

1 year ago

Alaska, fishing...

KIRO Newsradio staff

Listen: Friends, colleagues offer tribute to KIRO Newsradio’s Dori Monson

All day Monday, KIRO Newsradio's John Curley talked to friends, news makers, and more in tribute to Dori Monson.

1 year ago

Dori Monson Shorecrest...

Dori Monson Show

How to support charities reflecting Dori Monson’s values, passions

In tribute to Dori Monson, learn more about how you can support these three charities which best reflect his values, passions, and advocacy.

1 year ago

From left, Producer Nicole Thompson and KIRO host Dori Monson. (Courtesy of the Monson family)...

MyNorthwest Staff

Broadcasters, politicians, coworkers and friends remember Dori Monson

Dori Monson, a longtime KIRO Newsradio host, passed away Saturday. He is remembered by public figures, broadcasters, coworkers, and listeners.

1 year ago

Dori Monson...

MyNorthwest Staff

Longtime KIRO Newsradio host Dori Monson dies at age 61

We are deeply saddened to announce Dori Monson's sudden passing on Saturday, December 31, 2022, at a Seattle hospital.

1 year ago

Washington Rep: Capital gains tax is just ‘parity in the tax code’