freedom foundation

Austin Jenkins / NW News Network

A second lawsuit has been filed to overturn a newly passed capital gains tax in Washington.

The lawsuit by the Opportunity for All Coalition (OFAC), which successfully fought Seattle’s high-earners income tax in 2017, was filed Thursday in Douglas County Superior Court. The plaintiffs include business owners and farmers who would potentially be subject to the new tax, as well as the Washington Farm Bureau.

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Just days after the Washington Legislature gave final approval to a new capital gains tax aimed at the state's wealthiest residents, the conservative Freedom Foundation has filed a lawsuit on behalf of five individuals and one couple to overturn the tax. 

In the complaint filed Wednesday in Douglas County, Washington, lawyers for the plaintiffs said the 7 percent tax on gains above $250,000 from the sale of such things as stocks and bonds is an unconstitutional income tax. They also said it violates the Commerce Clause of the U.S. Constitution.