In passing this latest income tax, lawmakers subverted the voters’ will and our state’s constitution by mislabeling this an excise tax. The IRS and the 49 other states in the union all recognize capital gains tax as an income tax. The IRS has stated in a letter to U.S. Rep. Dan Newhouse that capital gains taxes are, in fact, income taxes. “More specifically, capital gains are treated as income under the tax code and treated as such.”
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