BIG WIN FOR WASHINGTON KIDS AND FAMILIES! COURT UPHOLDS CAPITAL GAINS TAX

By Dr. Stephan Blanford 

Children and families across the state have cause to celebrate today: The Washington State Supreme Court has ruled that the capital gains excise tax is constitutionally valid. This is tremendous news for young children across our state, as well as parents struggling to find and afford child care, and child care providers working hard to keep their businesses open. The tax, levied on profits on the sale of property exceeding $250,000 only affects a small number of super-rich Washingtonians, but generates $500 million in new funding for affordable child care and high-quality early learning created by the 2021 Fair Start for Kids Act (FSK). 

Attending a rally at the state capitol in support of the capital gains tax.

Children’s Alliance has been involved in every aspect of defending the tax and the revenue it creates to fund FSK. Many of the concepts that became law with the passage of FSK were germinated within the Early Learning Action Alliance (ELAA), a coalition that we lead. During the 2021 legislative session, we prepared parents and providers from across the state to give impassioned testimony about the needs in their communities. We provided analysis on the bill and lobbied reluctant legislators, sharing how it would improve conditions in their districts. And we cheered when it passed both houses of the Legislature and was signed into law by the Governor. 

But the story did not end there. 

Before the Governor’s ink was dry, a lawsuit was filed by a small handful of ultra-millionaires challenging the constitutionality of the tax. 

We played a significant role in the resulting case that came before a Douglas County judge. When the state Supreme Court took up the matter, we filed an amicus brief. In it, we highlighted how the tax helps to bring balance to our tax code which requires those who can least afford it to pay a disproportionate amount of their income in taxes, while the ultra-wealthy shirk their responsibility to the greater good. In an op-ed for the Seattle Times, we called attention to the racist policies that have continually impacted the financial well-being of Black and brown people, and how this change to our tax code can help us reverse those consequences. 

We have much to celebrate. Children’s Alliance activated every available tool of advocacy we had to help secure this victory— partnering with ELAA to develop the key elements of FSK, mobilizing parents and providers, researching and analyzing the legislation, communicating with the broader public and lobbying legislators. We were powered by our 6,000 members across the state and laser-focused on what is best for kids. I hope that you take a moment to celebrate with us.