The U.S. Supreme Court has denied a request to review a lawsuit seeking to repeal Washington state’s capital gains tax.
In May 2023, the Supreme Court of Washington upheld the 7% tax to capital gains of more than $250,000 per year. That saw the group challenging the levy looking to the U.S. Supreme Court to overturn it, arguing that it was a graduated income tax, which is illegal in Washington state.
On Tuesday, the Supreme Court opted not to hear the case, falling short of the four justice threshold needed to move it forward.
The tax raised an estimated $900 million in revenue in its first year, primarily targeting many of the state’s wealthiest earners.
The push to roll back the tax won’t end at the Supreme Court though, with one group putting forth a ballot initiative this year that would seek to repeal it by way of Washington’s voters.
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