Regarding recent proposals for a capital gains tax, it will never be enough! We were saddled with increased property taxes this year to pay for schools, but now the Superintendent of Public Instruction wants more, in the form of a capital gains tax. He wants to shift the tax burden of 4 million people who pay property tax to only 53,000 people who would pay capital gains tax.
My wife and I are two of those 53,000, both retired, and making a significant part of our retirement income from investment income. When we start drawing down our 401(k)s and IRAs, almost 100 percent of that will be taxed under Chris Reykdal’s scheme. Those retirees who rely mostly on their 401(k)s and IRAs to live on will be hurt the most. In our case, Reykdal wants to replace $340 in property tax reduction with a $5,300 capital gains tax, on top of the $1,200 property tax increase this year! This is insane! Just say no!