Lessons from Washington State’s New Capital Gains Tax - The Urbanist:

One of the first lessons is that our state’s richest residents are much, much richer than we understood — and they are continuing to get richer at a faster rate than previously assumed.

According to the Department of Revenue, just 1,200 tax returns and 2,500 extensions represent the households paying the new 7% capital gains tax on profits over $250,000 gained from selling stocks and bonds. And despite high interest rates and a stock market that contracted by 25% in 2022, these capital gains tax payers would have had to rake in billions more in passive profits from their stockpile of wealth last year.