What Is Initiative 1929?

Friday, April 8, 2022
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What is Initiative 1929?

I-1929 is an initiative seeking to repeal the capital gains tax passed by the Washington state Legislature in 2021. If it collects enough signatures it will appear on the November 2022 ballot.

 

What would Initiative 1929 do?

I-1929 would repeal SB 5096 that created a 7% tax on capital gains profits greater than $250,000 in a year. The law exempted profits from the sale of real estate, retirement funds, small business, and farms. As a result, this tax will be paid by only 0.2% of Washington taxpayers, primarily from profits from the sale of stocks and bonds.

 

What would be the impact of Initiative 1929?

The capital gains tax is estimate to raise $500 million a year that is dedicated to the Education Legacy Trust Account for public schools and early learning. I-1929 would eliminate that $500 million a year from things like safety and repairs to aging schools, expansions to early learning, and assistance for students with disabilities.

 

Who is behind Initiative 1929?

I-1929 is being funded so far by a small number of very wealthy people who could benefit from repealing the capital gains tax. They include venture capital and hedge fund executives who make millions in capital gains such as Matt McIlwain and Brian Heywood.

 

Why did the Legislature create a capital gain tax?

Despite being a “blue” state, Washington is last in the country when it comes to tax fairness. Low income Washingtonians pay 17% of their income in state and local taxes, while the wealthy pay only 3%. This law was part of a series of reforms seeking to balance our tax code, make the wealthy pay what they owe our communities, and ensure our all our kids receive a quality education. If I-1929 passes it would undermine all three of these goals for Washington.

 

Who is opposing Initiative 1929?

A broad range of Democratic and progressive groups are opposed to I-1929. You can join thousands of other Washingtonians saying you Decline to Sign I-1929.