Seattle City Economists: Proposed 2% Capital Gains Tax Could Spur Wealth Exodus

Seattle officials worry that implementing a local capital gains tax would coax wealthy residents to change their home addresses. Seattle City Councilmember Cathy Moore is proposing a local 2% capital gains excise tax that would be applicable to non-retirement financial gains over $250,000. However, the tax is based on where a taxpayer's permanent residence is located, which means residents with multiple Washington addresses can potentially avoid the tax altogether.