Living Liberty, Sept. 2021

Page 1

Union shill lies on tape about Freedom Foundation ...

4 5

Boardman appeal still evolving as SCOTUS considers .. Are teachers unions evil? Judge for yourself ...............

SEPTEMBER 2021

6

LIVING LIBERTY A Publication of the Freedom Foundation

of the

TAXPAYERS’ TAXPAYERS’ MONEY MONEY

Motion to dismiss capital gains tax lawsuit long on hubris, short on legal substance

Electronic Service Requested

Freedom Foundation PO Box 552 Olympia, WA 98507

C

hallenges to the state of Washington’s planned capital gains tax — including a lawsuit filed by the Freedom Foundation — got their first real airing in court on Aug. 18 as Douglas County Superior Court Judge Brian Huber heard arguments on the state’s motion to dismiss it out of hand. The request, filed in July, asserts the plaintiffs lack standing to sue because the tax is not scheduled to go into effect until next January, thus no one can predict with certainty at this point whether they will even have to pay it, let alone suffer damages. “It’s the plaintiffs’ burden to prove standing,” said Washington Assistant Attorney General Noah Purcell. “Because of the way the tax is structured, 99.9 percent of state residents won’t have to pay it. If that’s not speculation, I don’t know what is.” The state, of course, has no trouble speculating that 7,000 residents will start paying the tax in four months, or that it will cost them $500 million each year. Its argument about standing is simply a crude attempt to avoid challenges to the tax by anyone prior to imposition. The capital gains measure, passed by Washington’s Legislature during the 2021 session, taxes the sale of certain property

By JEFF RHODES, VP for News & Information

exceeding $250,000 per year at 7 percent and clearly violates Washington’s constitution, which prohibits income taxes that treat earners differently. Proponents of the tax insist that distinction doesn’t apply in this case because the new assessment is an excise tax rather than an income tax. But state law clearly treats property as income. The legislation also contradicts the will of the voters, who have rejected numerous attempts to levy a statewide income tax over the years. The Freedom Foundation, in conjunction with the Seattle law firm of Lane Powell, filed suit in Douglas County to fight the tax even before Gov. Jay Inslee signed the bill into law during May. Its plaintiffs include Seattle business owner Suzie Burke, Chris Quinn of Cherry Hill Investments in Wenatchee and Maryhill Winery co-owner Craig Leuthold. The Freedom Foundation’s case was later merged with a separate lawsuit whose plaintiffs are making essentially the same arguments. “The state’s motion to dismiss the case just shows how reluctant its lawyers are to take ownership of their own arguments,” said Freedom Foundation CEO Aaron Withe. “I guess when you have unlimited amounts of the taxpayers’ money to spend and Jay Inslee’s pet tax project to defend, there’s no reason not to waste the court’s time with as many frivolous motions as you can think up.” Judge Huber asked why standing hadn’t been an issue when Seattle attempted to levy a similar tax on its high earners in 2017. Purcell noted the state was not involved in that case, while fellow WashSee CAPITAL GAINS Page 10


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.