Washington’s capital gains tax hit $1.5 billion in fiscal 2026, yet covers less than 10% of the state’s projected budget shortfall. Preliminary returns for fiscal 2026 came in at roughly $1.5 billion, about $750 million above the February forecast and far above the $584 million collected the year before.
Spending Problem
The revenue showed up, and that is worth saying plainly. However, the impact of the barrage of recent tax increases is likely to be felt over time, not all in the first few years. It is clear that businesses and wealthy people are leaving, but it takes time for the impact of that to be felt. The record-smashing capital gains haul that covers less than 10% of the problem is not proof that the rich paying their fair share will bring us out of persistent budget deficits. It is proof that Washington has a spending problem, and historical tax increases and revenue collections will not fix the state budget unless lawmakers begin to reckon with that fact.
Original reporting: Clark County Today (Vancouver WA) — read the source article.
