Also there is always the standard deduction, and I think at the federal level there is even 30k on top of that you can take in LTCG without any taxes. So not a luxurious lifestyle, but certainly enough to survive.

I don't think WA is doing that though. They probably have a much lower threshold when the capital gains tax sets in.

Edit: just read a bit closer and WA is exempting the first 250k in gains per year. So they are offering an even better deal than the feds.