If passed, Initiative 2109 would repeal a 7% tax on capital gains for assets worth more than $250,000. Supporters of the repeal said capital gains taxes are volatile and it could lead to an income tax down the road.

Wesley Tharpe, senior adviser for state tax policy at the Center on Budget and Policy Priorities, noted 42 states have capital gains or income taxes and capital gains taxes are one of the most effective tools to balance out tax codes.

"Things like personal income taxes, corporate income taxes, capital gains taxes, those are going to collect a bit more from those at the top," Tharpe explained. "That helps balance out the fact that lower- and middle-income people are contributing a much larger share in things like sale taxes and fees - and to some degree, property taxes as well."

Last year, Washington state's capital gains tax pulled in about $786 million. The first $500 million collected from it goes toward schools, early learning and child care. Money collected beyond it is used for school construction. Washington has historically had one of the most regressive tax systems in the country.

There would be long-term effects from repealing the capital gains tax from investing less in quality education, early learning and child care.

"You're going to wind up down the road with a less competitive workforce, communities that are not as attractive of places to live and work. There really is some significant economic risk to taking away that source of revenue for those public priorities."

COMMENT: This is a perfect example of what is wrong throughout the country. Income and wealth inequality, facilitated by government tax policy, not only makes the very wealthy most politically powerful, it steals resources from everyone else: needed resources, especially for children. Here when there is a policy to redress that problem, the wealthy are eager to grab their money back.