Capital gains tax: Why punish mom-and-pop retirees?

Re: “I’m a top 3-percenter; please tax me more, fix broken system,” (TNT, Dec. 20).

Once again, the governor trotted out a capital gains tax proposal. This, even though a capital gain is income and the Washington Constitution forbids an income tax.

The TNT’s reporting includes this opinion piece from a “top 3-percenter” (those who make over $200,000 a year) supporting the proposal.

Doesn’t it tell us something about state spending when an exclusive Browns Point enclave resident uses state aid to pay for a wheelchair and food for her special-needs child?

If the state is giving aid to those making over $200,000 a year, we don’t need new taxes; we need to re-examine spending.

Who would be impacted by a capital gains tax? Not the “top 3-percenter.” She acknowledged that herself. Our “homegrown billionaires” didn’t generate wealth by trading stocks; they built and grew businesses to the benefit of themselves and our community.

No, those hit hardest will be the mom and pop retirees who spent decades saving to fund their retirement, relying on dividends and capital gain distributions.

Before we tax Papa and Nana, let’s cut spending and stop providing aid to the wealthy.

This story was originally published December 26, 2020 at 5:08 PM with the headline "Capital gains tax: Why punish mom-and-pop retirees?."