Washington Tells Justices to Skip Capital Gains Tax Challenge

Washingtonians challenging the state’s new capital gains tax don’t have standing before the US Supreme Court because they haven’t shown they were injured by the law, the state told the justices.

“Petitioners’ claim here is that Washington’s tax violates the dormant Commerce Clause when applied to gains earned from sales outside of Washington, but they have not shown that they owe the tax at all, much less based on out-of-state sales,” the state argued in its brief in opposition filed Friday. “They thus can show no injury from the aspect of the tax they claim is unconstitutional.”

Even if the ...