Seattle council member proposes local capital gains tax

Seattle City Councilmember Alex Pedersen on Wednesday rolled out "a bold tax reform" to eliminate the regressive water tax and replace it with a 2% local expansion of the state's new progressive tax on high-end capital gains.

It seems like an unusual proposal from Pedersen, who is a member of the council's more moderate, pro-business bloc. Pedersen opposed doubling of the property tax portion for the Parks District as well as imposing a new payroll tax on Seattle employers.

Pedersen said the local capital gains tax could generate around $50 million annually to offset the amount Seattle takes from ratepayers' water bills. It would be the first time the city has proactively eliminated a regressive tax, according to the council member.

"The top 1% can afford to pay this 2%," Pedersen said in a press release.

https://www.bizjournals.com/seattle/news/2023/06/07/pedersen-seeks-seattle-capital-gains-excise-tax.html