Washington Capital Gains Tax Will Reduce Inequality, Groups Say

Unions, rural business leaders, racial justice groups, and law professors backed Washington state’s new capital gains tax at the state high court, arguing it’s an appropriate way to raise much-needed funding for education and child care.

Four amicus briefs filed by the groups urge the Washington Supreme Court to overturn an appeals court ruling striking down the tax as an unconstitutional income tax. The high court ruled recently that the state tax department can start collecting the new tax while the case is pending. The court is to hear arguments Jan. 26.

The 7% excise tax on gains above $250,000 ...