Washington state approves capital gains tax

Re:Washington state approves capital gains tax by seattle_spring on Friday April 30, 2021 @02:08PM (#26997097)

> Not sure how you arrived at 60% - aren't federal capital gains topped off at 20%, and this bill only 7% for gains over $250,000?

They are this year, but the Biden proposal wants to raise tax for any income over $1m (LTCG included) to the top marginal rate of 39.6%. Add that to the proposals to increase SS to 12% for income over $400k, ~3% medicare tax, etc.

> why is the employee selling all of their stock in one year?

Because having all of your net worth in one company is a huge risk, and anyone wanting to mitigate risk would want to diversify as soon as possible.

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Re:Washington state approves capital gains tax by vineyardmike on Friday April 30, 2021 @02:45PM (#26997597)

Risk mitigation isn’t free. It’s 7% now.

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Re:Washington state approves capital gains tax by seattle_spring on Friday April 30, 2021 @04:43PM (#26999044)

... or, in this case, free if you just work for a FAANG or other public company and realize your income yearly rather than in a lump sum. If your end goal is to further dissuade engineers from joining startups, then "mission accomplished" I guess.

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