ew73

ew73 t1_jdlkzuy wrote

Capital Gains taxes are pretty simple.

Capital gains is just a fancy way to say "profit" when you're talking about stocks. It's the amount that some asset increases since you bought it. It's only calculated when you sell the asset. So if you buy something for $10, and sell it for $100, your "capital gains" is $90.

The Washington law taxes capital gains, but only amounts over $250,000, at 7%.

The Washington Supreme Court decdied that the capital gains tax law as an "excise tax".

An excise tax is one that is often levied on some some good, or activity. Cigarettes and alcohol are often subject to additional excise taxes, for example. Gasoline is another common item subject to excise taxes.

So, along with cigarettes, gasoline, alcohol, and some other things, capital gains are also subject to an excise tax.

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