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On April 10, 2026, Washington state lawmakers unveiled a new tax plan aimed at addressing the state's budget deficit. The proposed plan includes a combination of new taxes and adjustments to existing taxes in an effort to increase revenue and close the budget gap.One of the key components of the proposed tax plan is a new capital gains tax on high-income earners. Under the plan, individuals making over $250,000 per year would be subject to a 9% tax on capital gains, which includes profits from the sale of stocks, bonds, and other investments. Lawmakers estimate that this new tax could generate over $500 million in additional revenue annually.In addition to the capital gains tax, the proposed plan also includes adjustments to the state's sales tax and business and occupation tax. Lawmakers are considering increasing the sales tax by 1% on certain goods and services, as well as implementing a new tiered system for the business and occupation tax that would require larger businesses to pay a higher rate.The new tax plan has garnered both support and criticism from lawmakers and residents alike. Proponents argue that the proposed taxes are necessary to fund vital services and programs in the state, while opponents believe that the tax increases will place an undue burden on middle-class families and small businesses.Governor Mia Thompson, who has been a vocal supporter of the new tax plan, stated that the proposed taxes are a "fair and equitable way to address our budget shortfall and ensure that our state remains financially stable in the years to come."The Washington state legislature is expected to debate and vote on the proposed tax plan in the coming weeks. If approved, the new taxes would go into effect in the next fiscal year. Stay tuned for more updates on this developing story.