Washington State Supreme Court deems capital gains tax constitutional.

The Washington State Supreme Court has ruled that the state's new capital gains tax is constitutional, reversing a lower court ruling that deemed it unconstitutional. The 7% tax applies to profits from the sale of stocks and some other capital assets that exceed $250,000 and is expected to bring in roughly $500 million per year to fund early learning and child care programs. The ruling relieves state lawmakers from having to scramble to shore up the state budgets that they are currently drafting in the 105-day regularly scheduled legislative session. The decision is a blow to conservatives who have long argued that the capital gains tax is unconstitutional and could eventually lead to a personal income tax, which voters have repeatedly rejected.