Judge Weighs Constitutionality of Washington Capital Gains Tax

Attorneys for farmers and business owners in Washington state urged a trial court judge Friday to rule a new excise tax on capital gains is unconstitutional on its face.

Douglas County Superior Court Judge Brian C. Huber said he will issue a ruling soon, possibly in two weeks, following a two-hour hearing on a motion from the plaintiffs to strike down the law, and a counter motion from Washington Attorney General Bob Ferguson (D) to dismiss the lawsuit challenging the tax.

The plaintiffs allege the tax violates state and federal law in multiple ways. It violates the U.S. ...