Seattle City Council Stalls Proposed Capital Gains Tax

A proposed 2% capital gains tax targeting high earners failed to advance in Seattle's budget committee vote.

The Seattle City Council's Select Budget Committee was deadlocked in a 4-4 vote, with one abstention, on the proposed 2% capital gains tax.
The tax aimed to generate $16 million to $51 million annually to fund housing and food assistance programs.
Opponents argued that the city should improve outcomes with existing funds before introducing new taxes.
Proponents, including Councilmember Cathy Moore, emphasized the tax's potential to support progressive funding without burdening lower-income residents.
The proposal could be revisited in the future, as some council members expressed openness to exploring the idea further.