Seattle's Proposed 2% Capital Gains Tax Raises Concerns Over Wealth Exodus

The tax aims to fund social programs but faces criticism for potential economic impacts and resident relocation.

Seattle City Councilmember Cathy Moore has proposed a 2% capital gains tax on non-retirement gains over $250,000 to support food and housing initiatives.
Critics argue the tax could drive wealthy residents out of Seattle, negatively impacting the city's economy and tax revenue.
The tax proposal follows Washington's own 7% capital gains tax, which has already led to some high-profile relocations, including Jeff Bezos moving to Florida.
Supporters believe the tax is a necessary measure to address growing income inequality and unmet needs among the city's vulnerable populations.
The Seattle Office of Economic and Revenue Forecasts estimates the tax could generate $16 million to $51 million annually, though implementation and maintenance costs may offset some revenue gains.