Adopted by the members of the 34th District Democrats at the February 2025 meeting.
Resolution in Support of a Capital Gains Tax for the City of Seattle
Whereas the City of Seattle’s revenue sources have not kept pace with inflation, growing demand for essential services, and the urgent need for affordable housing; and
Whereas the Seattle City Council’s current reliance on spending cuts and reappropriating funds from the payroll expense tax — originally designed to largely fund affordable housing — to close budget shortfalls is not a sustainable long-term solution; and
Whereas Washington and Seattle have one of the most regressive state and local tax systems in the country, where the poorest twenty percent of our residents pay at least three times more of their income in taxes than the top 1%; and
Whereas a capital gains tax represents a progressive, legally viable source of new revenue for the City of Seattle, with support recently demonstrated by members of the Seattle City Council; and
Whereas the 2024 election reaffirmed broad public support for a statewide capital gains tax, including strong backing within Seattle and the 34th Legislative District,
Now therefore be it resolved the 34th District Democrats strongly support the enactment of a capital gains tax in Seattle to reduce our reliance on regressive taxes, address projected budget deficits, and preserve payroll expense tax revenue for investments in affordable housing; and
Be it further resolved the 34th District Democrats urge the Mayor of Seattle and the Seattle City Council to support a municipal capital gains tax, especially councilmembers Nelson, Rinck, Saka, and Kettle who represent jurisdictions that overlap with our legislative district.
Submitted December 9, 2024 by:
- Jordan Crawley, Chair of the 34th District Democrats and PCO in the 34th Legislative District
- Graham Murphy, member and former Chair of the 34th District Democrats (2023-24)
References:
- KUOW – How city leaders want to patch Seattle’s $250 million budget deficit
- KUOW – How the Seattle City Council plans to patch a budget hole with JumpStart revenue
- Seattle Rejects Capital Gains Proposal, but Progressive Tax Time Is Nigh – The Urbanist
- Washington Measure 2109 Election Results 2024: Repeal Capital Gains Tax – The New York Times
- U.S. Supreme Court will not hear challenge against Washington state capital gains tax – Washington State Standard