Tech millionaires calling 9.9% capital gains tax on multi-million dollar exits "catastrophic."
Same millionaires already pay ZERO income tax in Washington.
Let me show you the math they don't want you to see. 🧵
www.geekwire.com/2026/washing...Working family in Seattle making $75K/year:
- Pays ~14% effective tax rate (sales, property, B&O pass-through)
- Has been paying this rate for years
- Gets zero exemptions
Total annual tax: ~$10,500
Tech founder selling company for $50M:
- Paid $0 income tax during years building company
- Gets 100% federal capital gains exemption (QSBS)
- Would pay 9.9% state tax ONLY on amount over $250K
Total tax on $50M: ~$4.9M (9.8% effective)
So the working family pays 14% on ordinary income every year.
The founder pays ~10% once on a massive windfall, after years of zero income tax.
And the founder calls THIS "catastrophic."
While already keeping 100% of federal capital gains.
Jan 28, 2026 05:06That founder used:
- Public university talent
- Public roads and infrastructure
- Public legal/court system
- Public-funded internet protocols
Paid $0 income tax during the entire build.
Now sharing 9.9% of the exit is "unreasonable"?
Washington faces $2.3B budget hole.
Schools underfunded.
Housing crisis accelerating.
Infrastructure crumbling.
But tech founders who already pay no income tax need their THIRD tax break protected?
This is what regressive taxation looks like.
This isn't about innovation or entrepreneurship.
It's about a class that used public resources, paid no income tax, already got massive federal exemptions, and still demands more.
While working families carry the burden.
That's extraction, not contribution.
When millionaires call modest taxation on windfall profits "catastrophic", while working families pay higher rates on ordinary income, they're telling you exactly whose interests matter.
Washington has the 2nd most regressive tax system in America. This is why.
