OLYMPIA, Wash. — Initiative 2109 in Washington state is projected to fail.
"Washingtonians also made clear they want to preserve the equity of our tax system with the capital gains tax on the super-wealthy," Gov. Inslee said Wednesday.
If passed, Initiative 2109 would have repealed the annual state capital gains tax on the sale or exchange of long-term Washington capital assets.
Supporters of the initiative argued the capital gains tax is "volatile" and not the right source of revenue to fund early childhood education. He believes the capital gains tax is a "gateway" to a future income tax.
Opponents of I-2109 believed repealing the tax could have a "ripple effect” on childcare subsidies and educational programs.