Why is Inslee “very confident” the courts will OK the new capital gains income tax?
An initiative is the best way to stop it.
Inslee and the Democrats passed Engrossed Substitute Senate Bill 5096 imposing a new capital gains income tax.
Too many on our side respond to that by saying “They can’t do that, that’s OBVIOUSLY unconstitutional because a capital gains income tax is another type of income tax and the courts have repeatedly said that an income tax violates our state Constitution.”
So if that’s all true, then why is Inslee “very confident” the courts will OK it?
There are 9 judges on the state supreme court.
So that means only 5 of them need to agree with Inslee and the Democrats that ESSB 5096 isn’t an income tax, it’s an excise tax.
There’s plenty of “cover” for them to rule that way:
* First of all, section 5 reads: Beginning January 1, 2022, an excise tax is imposed on the sale or exchange of long-term capital assets.
They say it’s an “excise tax” because the bill says it’s an “excise tax.” That’s pretty darn good cover.
* The words “income tax” appear no where in ESSB 5096.
We can all say it’s “really” an income tax until we’re blue in the face but that doesn’t change the fact that the words “excise tax” are right there in the bill and the words “income tax” are not.
Why couldn’t 5 of them — many of whom were appointed by Jay Inslee — say with a straight face that ESSB 5096 is an excise tax (because the bill calls it that) and that it isn’t an income tax (because those words don’t appear in it)?
Why wouldn’t all 9 be able to say that?
What the IRS says, what 49 other states say, what decades-old rulings say is all fine and good, but the only thing that matters is what the bill says and what 5 judges say.
THERE’S 2 LEGAL CHALLENGES TO ESSB 5096 — GOOD LUCK WITH THAT
What’s in the bill is what matters when it comes to the courts.
The same goes for an initiative.
What makes the initiative better?
It prohibits the state, counties, and cities “from imposing or collecting taxes based on income.”
And then it defines it:
For the purposes of this section, “taxes based on income” includes any payroll tax, excise tax, and any other type of tax based on an individual’s or household’s personal income, whether net, gross, or adjusted gross income, capital gains income, or any other portion, or type of income.”
That’s the key difference.
The lawsuits count on judges to ignore what’s in the bill.
The initiative, on the other hand, explicitly prohibits excise taxes and it explicitly repeals the excise tax in ESSB 5096.
The initiative is superior to the lawsuits.
BUT WHAT’S EVEN BETTER?
Attacking the Democrats’ Holy Grail in the courts AND at the ballot box with the initiative.
It’s super stupid to put all our eggs in the litigation basket, especially with Inslee being “very confident” in the courts.
Doing an initiative is absolutely essential to stopping Inslee’s ESSB 5096.
Is it any wonder the AG is working so hard to impose a lifetime ban on all my future political activity?
Literally thousands of you recognized his abuse of power and helped me and my family survive the last 8 1/2 years of investigation / litigation / persecution.
Now I ask you to please donate to my legal defense fund so we can get these ridiculous restrictions on free speech overturned:
Please help me fight back.
In addition, we worked really hard on our $30 Tabs Initiative:
And now, a message from Sid Maietto and Larry Jensen:
“We’re asking folks to donate to our PAC so Tim can get paid back. And your donations will also help stop Inslee’s Income Tax and Carbon Tax Schemes with our initiatives which we are co-sponsoring with Tim Eyman.”
Donate online by Paypal/Debit/Credit Card here
Or mail a check — made payable to “Permanent Offense” — to: Permanent Offense, PO Box 6151, Olympia, WA, 98507.
Taxpayers need our help now more than ever.
Sid Maietto & Larry Jensen
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I love you all.