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Ross: If you expect to pay the proposed capital gains tax, share your stock picks

The New York Stock Exchange (NYSE) stands in lower Manhattan on March 09, 2021, in New York City. (Photo by Spencer Platt/Getty Images)

Washington state is famous for taxing low-income people at a higher rate than rich people – and it’s because we rely on a flat sales tax instead of a graduated income tax.

But now, the state legislature – by a near unanimous bipartisan vote – has approved a tax rebate for about 420,000 residents as a way of making the system a little more fair for families with incomes less than about $57,000. They would get a tax rebate of up to $1,200 a year.

And this got support not just from Democrats, who have wanted this for a long time, but also from most Republicans. Why? Because Republicans like lower taxes! And giving people a rebate is like lowering their taxes. So there it is: bipartisan agreement on tax fairness.

But $1,200 is not going to lift a family out of poverty, which is why Democrats still plan to take this to the next level.

They still want a capital gains tax to equalize things even further. For stockholders who cash in, that tax would take 7% of their annual gains — but the first quarter of a million dollars is exempt. As in zero tax below a quarter of a million dollars.

That sounds like a pretty high exemption to me, but judging from all the complaints about this idea, all I can conclude is that a lot of you are expecting to have to pay it.

And all I can say to that is – could you share some of your stock picks?

I have owned stock since my parents gave me 12 shares of AT&T for my 12th birthday. I would LOVE to be able to cash in on more than a quarter of a million dollars in capital gains in a single year. Even if it DID mean paying 7% to the state.

And I know it enrages some of you that I would support such a thing, and you can scold me for it, but when you write, just please include the stock picks that made you rich – because, frankly, I’d be more likely to read your email.

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