by Marilyn Watkins

Washington’s State Senate has taken a major step toward a more just and lasting recovery from COVID-19 with passage of a new tax on extraordinary profits from the sale of stocks and other assets of the super-rich. Revenue generated from individuals who have continued to rake in wealth during the pandemic will help fuel the urgently needed rescue of families and small businesses and provide a start toward the long-term investments in child care, public health, and other supports our communities need to thrive.

If Senate Bill (SB) 5096 makes it past additional legislative hurdles to final passage, it will generate over $500 million annually from 8,000 or so of Washington’s wealthiest residents. The first $350 million of new public funds will go into the education legacy trust fund to finance childcare and early learning, K–12 education enhancements, and college access. Revenues beyond that will go into the general fund to support other priorities such as public health and housing and into a new taxpayer fairness account where it could finance the Working Families Tax Credit and other relief for lower-income households.