Washington Supreme Court upholds effort to balance tax code

By GENE JOHNSON
Associated Press

SEATTLE (AP) — The Washington Supreme Court on Friday upheld the state’s new capital gains tax, which was adopted by lawmakers in an effort to balance what is considered the nation’s most regressive tax code. In a 7-2 decision, the justices found the tax to be a lawful excise tax. Washington is one of nine states without an income tax, and its heavy reliance on sales and fuel taxes to pay for schools, roads and other public expenses falls disproportionately on low-income residents. The 7% capital gains tax applies to the sale of stocks, bonds and other high-end assets, with exemptions for the first $250,000 each year.