Bill > HB2082

This bill aims to increase funding for public education, early learning, child care, and higher education by modifying the capital gains tax and estate tax to create a more progressive tax structure. Specifically, the bill introduces an additional 2.90 percent excise tax on long-term capital gains exceeding $1,000,000, beginning in January 2025. For the estate tax, the bill increases the exclusion amount to $3,000,000 for estates of decedents dying on or after January 1, 2025, and creates a more progressive rate structure with top-tier rates increasing up to 35 percent. The legislature recognizes that Washington's current tax system is one of the most regressive in the nation, with low-income residents paying significantly higher tax rates relative to their income compared to high-income households. By implementing these changes, the bill seeks to generate additional revenue for education while making marginal progress toward creating a more equitable tax system. The new taxes will be dedicated to the education legacy trust account, which supports public K-12 education, early learning, child care, and higher education programs. The bill also includes provisions ensuring that the changes do not retroactively impact existing rights or obligations and contains standard severability clauses to protect the intent of the legislation if any part is deemed invalid.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2082&Year=2025&Initiative=false