OLYMPIA, Wash. – An effort to balance what is considered the nation’s most regressive state tax code comes before the Washington state Supreme Court on Thursday, January 26th.

Washington is one of nine states without an income tax, and its heavy reliance on sales and fuel taxes to pay for schools, roads and other public expenses falls disproportionately on low-income residents.

Lawmakers say they pay at least six times more in taxes as a percentage of household income than the wealthiest residents do, and middle-income residents pay two to four times as much.

Democrats in Olympia, led by Gov. Jay Inslee, sought to begin addressing that in 2021, when they enacted a 7% capital gains tax on the sale of stocks, bonds and other high-end assets.

It was expected to be paid by 7,000 people and bring in close to a half-billion dollars a year to help pay for public education in Washington, beginning this year.

But it faces a legal challenge from wealthy residents and business and agricultural organizations, who say it violates the state and federal constitutions.