Judge Strikes Down Capital Gains Tax On Grounds That It Is Unconstitutional

The Opportunity for All Coalition (OFAC) issued the following statement following Douglas County Superior Court Judge Bryan Huber’s decision to strike down the illegal capital gains income tax. Judge Huber’s ruling was based on the grounds that the tax is an unconstitutional income tax.

“Judge Huber saw through the state’s attempt to enact this illegal capital gains income tax under the guise of an excise tax,” said OFAC president Collin Hathaway. “It is a great day for Washington taxpayers who overwhelmingly voted in November for the state legislature to overturn this tax and the 24 local governments in Washington that ban income taxes. It is also a great day for the Washington’s constitution. We are grateful to everyone who contributed to this victory by supporting the Opportunity for All Coalition.”

Former Washington Attorney General Rob McKenna of Orrick represented plaintiffs. “Washington’s courts have twice rejected previous efforts by the legislature to enact an unconstitutional income tax, while Washington’s voters have rejected 10 straight ballot measures, including six proposed constitutional amendments, that would have created a graduated state income tax. Judge Huber’s decision rightly upholds those precedents and honors the voters’ clearly state preference that we remain a state without a graduated income tax. We thank him for his careful consideration in this case.” 

If members of the media would be interested in talking further, please reach out to Jill Jackson at jjackson@monumentadvocacy.com.