Washington State Supreme Court upholds constitutionality of capital gains tax.

The Washington state Supreme Court has ruled that a statewide tax on capital gains is lawful, allowing the legislation to move forward nearly two years after it was approved by lawmakers. The law imposes a 7% tax on capital gains of more than $250,000 from the sale of stocks and bonds, excluding revenue from real estate and retirement accounts, among other exceptions. The estimated $500 million in yearly revenue the tax is expected to generate is earmarked to be funneled into early-childhood education programs and school construction.