
Don Nielsen: Washington's new tax hikes will backfire
Washington raised its maximum estate tax rate to 35%.
The state increased its capital gains tax to 9.9%.
Gov. Bob Ferguson recently signed into law the largest tax increase in state history. It included a 6-cent per gallon increase in the gas tax. Washington already had the third-highest gas price in the country, exceeded only by California and Hawaii.
Next, Ferguson approved a rent control package that limits rent increases. Any student of economics knows that if you restrict a business's ability to make a profit, the business will stop investing. It's just common sense. Given these constraints, why would any builder decide to build in Washington? Despite its stated goal, this legislation will not increase housing. It will reduce it. If you think housing costs are high now, just wait.
GET TO KNOW YOUR CITY
Find Local Events Near You
Connect with a community of local professionals.
Explore All Events
The actions above continue to reduce the attractiveness of Washington to business investment. But it gets worse.
Washington had the highest maximum estate tax rate in the country at 20%, and then just raised it with the most recent budget to a whopping 35%. If you've achieved any degree of financial success during your lifetime, for your children's sake, you'll probably want to make sure you don't die in Washington.
Related content
If the estate tax wasn't bad enough, the state also initiated a 7% capital gains tax in 2023 and then raised it to 9.9% this year. The action gives businesspeople even more reason to leave the state, reducing the number of people who create jobs and boost the economy. We are losing the very people we need.
Before the tax increases, Washington had the fourth-highest cost of living in the country, according to Patriot Software. Yet our politicians talk about trying to help the poor and the middle class. It is evident that our politicians did not take economics in their schooling. Or, they have forgotten everything they learned.
Crime and homelessness are also major problems. Washington has one of the highest homeless rates per capita in the U.S., yet we continue to pour money into programs that make the problem worse, such as buying apartments to provide permanent housing for drug addicts and alcoholics with no strings attached. We treat an addiction problem as a housing problem.
Further, by deemphasizing law and order, we allow people to destroy the appearance of our cities by treating graffiti as a nuisance rather than a crime. And even when arrests are made, we vote for soft-on-crime judges who immediately release accused criminals.
On top of all this, we spend more state money per student than any other state in the nation, yet our students are performing worse than ever. Fourth-grade reading scores have been declining and are now at 1994 levels. Enrollment is declining as costs increase. The percentage of high school graduates who attend college is declining. Our student-to-teacher ratio is the ninth worst in the nation, even as teacher pay ranks third. In short, our high-cost education system is failing our children.
In summary, Washington in the last decade has moved from one of the best places to live to one of the worst. Today, Washington has a high cost of living, a highly regulated business environment, a poor education system and a tax system that penalizes success more than any other state.
Why would any successful person want to live here or even die here?
Don Nielsen is the chairman of the Discovery Institute's American Center for Transforming Education. The Discovery Institute is a conservative think tank based in Seattle.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
24 minutes ago
- Yahoo
How ethereum rose to become a mainstream cryptocurrency
The Ether Machine, a new crypto venture formed through the merger of Ether Reserve and Dynamix Corporation (DYNX), is preparing to go public after raising over 400,000 ether (ETH-USD), equivalent to $1.5 billion, offering the public a new way to access cryptocurrency yields. The news came after a week when the ethereum cryptocurrency surged by over 20%, leading some to predict that it could pass $4,000 and sending long-term predictions into the $10,000s. Ether Machine isn't the first firm to do this. BitMine Immersion Technologies (BMNR), chaired by Fundstrat's Tom Lee, announced plans to begin stockpiling ether back in late June. SharpLink Gaming (SBET), a Nasdaq-listed sports-betting technology company, made a similar move in late May when it named Ethereum co-founder Joseph Lubin as its new chairman. Further adoption of the blockchain into the mainstream in recent months has supported ethereum's rise, including Robinhood's (HOOD) introduction of ethereum staking in the US and the passage of the stablecoin-focused GENIUS bill through the US Senate. Here's what to know about ethereum and what sets it apart from other blockchains. What sets ethereum apart? Ethereum is a decentralized blockchain platform that hosts programmable contracts and other cryptocurrencies. Its native crypto token, named ether but sometimes referred to as ethereum, is now the second-largest cryptocurrency by market cap, topped only by bitcoin (BTC-USD). A 'blockchain' is a digital record of transactions and other data. New 'blocks,' or batches of validated records, are added onto the publicly accessible chain, referencing previous ones, so that anyone using a blockchain agrees on the current state of finalized transactions. 'Transactions are entered, and then they are immutable," Algorand Foundation CEO Staci Warden told Yahoo Finance. "It is about integrity. You know when something is entered, nobody else can mess around with it.' In addition to ether and other popular cryptocurrencies, over 50% of all stablecoins in circulation are hosted on ethereum, and the platform can also be used to exchange NFTs and more, according to Galaxy. One major difference in how these transactions take place on ethereum compared to the bitcoin blockchain is that ethereum includes functionality for users to create and use so-called smart contracts. Smart contracts are programs that can execute financial operations when conditions are met, often used to develop applications known as decentralized finance or DeFi apps. These 'dapps' offer a variety of financial services without the middleman of traditional financial institutions. For example, a smart contract could be set up to automatically initiate a purchase once a cryptocurrency hits a certain price. For some, the fact that smart contracts can't be altered once put on the blockchain and that they operate based on code instead of being manually performed by an individual or institution are benefits of the system. How it began Ethereum launched on July 30, 2015, as 'Frontier' after raising $18 million in an initial coin offering (ICO) the year prior. The release followed a period when ethereum encouraged users to stress-test the blockchain by offering a prize of 25,000 ether. In 2016, ethereum network participants attacked a decentralized autonomous organization, or DAO, which had raised ether through crowdfunding. The users targeted a vulnerability in DAO's smart contracts and stole over $50 million worth of ether. To reverse the attack, ethereum created a controversial 'hard fork,' in which they rolled back the blockchain's history to before the theft. While most adopted this new blockchain, some refused and stuck with what is now known as Ethereum Classic. Since then, ethereum has continued rolling out updates, including a series known as 'The Merge' conducted in 2022. With it, ethereum switched from using proof-of-work for blockchain consensus to proof-of-stake, separating it from peers like bitcoin. Proof-of-work blockchains function through the work of 'miners,' or specialized computers that contribute computational power to validate transactions using cryptography. Miners are rewarded with newly issued cryptocurrency for the amount of computing power they contribute to verifying transactions. Under the proof-of-stake system, however, security comes from users locking a certain amount of the cryptocurrency they own into a smart contract as collateral before they can be selected to add new blocks of validated transactions to the blockchain. According to the Ethereum Foundation, this switch alone cut the platform's energy consumption by 99.5%, and co-founder Vitalik Buterin claimed that it would reduce the world's energy consumption by 0.2%. 'With climate concerns and ESG-investing remaining a major topic for institutional investors, ethereum's drastic energy reduction could open doors for additional capital flows and longer-term sustainability,' Tom Dunleavy, a senior research analyst with Messari, told Yahoo Finance. Broader adoption Since its launch, ethereum has drawn attention from investors and organizations alike. Visa (V) began settling transactions using the USD Coin (USDC-USD) stablecoin on the ethereum blockchain in 2021. 'The announcement today marks a major milestone in our ability to address the needs of fintechs managing their business in a stablecoin or cryptocurrency,' Visa chief product officer Jack Forestell said. 'It's really an extension of what we do every day, securely facilitating payments in all different currencies all across the world.' More recently, with stablecoin legislation passing this June, Wall Street executives, including JPMorgan Chase (JPM) CEO Jamie Dimon and Citigroup (C) CEO Jane Fraser, have indicated interest in working with crypto assets. Public figures have also joined the movement to adopt crypto. In February, Eric Trump posted to X, saying, 'In my opinion, it's a great time to add $ETH.' His words reflect a presidential administration that has been supportive of cryptocurrency. President Trump's Media & Technology Group filed to list an ETF that included ether, and the president celebrated the passage of the GENIUS Act on Truth Social. 'HAPPY CRYPTO WEEK!' Trump posted last week. 'This is our moment — Digital Assets, GENIUS, Clarity!' David Hollerith contributed to this post. — Nina is a data reporting intern for Yahoo Finance.
Yahoo
24 minutes ago
- Yahoo
Why NIKE (NKE) Could Be a Comeback Story Among the Dogs of the Dow
NIKE, Inc. (NYSE:NKE) is included among the 11 Dogs of the Dow Dividend Stocks to Buy Now. A close-up of a hand holding a casual sneaker with the Nike logo on it. The world's biggest footwear company stated on Thursday that existing tariffs might push its costs up by around $1 billion. This announcement followed the release of its fiscal fourth-quarter 2025 results, which managed to surpass estimates. In fiscal Q4 2025, NIKE, Inc. (NYSE:NKE) reported revenue of $11.1 billion, which fell by nearly 12% from the same period last year. However, the revenue surpassed analysts' estimates by $373.5 million. The fourth quarter marked the period with the most significant financial impact from the company's 'Win Now' initiatives, and management expects these pressures to ease going forward. Leadership expressed confidence in the firm's ability to steer through the current unpredictable environment by maintaining focus on controllable factors and effectively carrying out the 'Win Now' strategy. NIKE, Inc. (NYSE:NKE)'s cash position also remained stable. The company ended the year with cash and equivalents and short-term investments of $9.2 billion. During the year, it returned $2.3 billion to shareholders through dividends. The company offers a quarterly dividend of $0.40 per share and has a dividend yield of 2.10%, as of July 26. It has raised its payouts for 23 consecutive years. While we acknowledge the potential of NKE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24 minutes ago
- Yahoo
Car dealers halt sales of two second-hand models amid 'stop-drive' warning
Car dealers have been told to halt sales of second-hand Citroens amid replacements to potentially dangerous airbags. The warning was extended after the French manufacturer's parent company Stellantis issued a 'stop-drive' notice to certain Citroen models in June. It comes after a woman sustained fatal injuries caused by an airbag in a 2014 Citroen C3 in Reims, France, last year. Now, second-hand Citroens are also being included in the warning amid thousands still being listed for sale across the UK, according to This is Money. 'Buyers could have been driving away in potentially dangerous motors while also invalidating their insurance,' an article states. Since then, a team of motor trade lawyers have now issued a nationwide warning to used car dealers to suspend sales of vehicles in stock What Citroens are being recalled? The vehicles affected are second-generation Citroen C3s produced from 2009 to 2016 and first-generation DS3s manufactured from 2016 to 2019. As a result, around 82,000 C3 and DS3 models have been removed from the road across France. What is the recall on the Citroen C3 2025? The vehicles use Takata airbag systems, which could be faulty. However, Stellantis UK said that there were no reported incidents of faults in the UK, but it has decided to take action regardless. The car manufacturer in a recent statement said: 'Stellantis UK is mobilising its full network of suppliers, retailers and manufacturing plant to support this action to ensure the fastest, safest and most convenient solution for each customer. 'Stellantis remains fully committed to acting swiftly, transparently, and responsibly in addressing this issue.' Owners have been told to book their vehicles in to be rectified as early as possible and to not drive them in the meantime. However, a study by Which? revealed that hundreds of these cars were listed for sale on major used vehicle websites with no information that the manufacturer had issued a stop-drive notice. How do I check my Citroen recall? If you already own an affected Citroen, you should be contacted by letter, or you can check whether your car is affected by using the VIN check tool on Citroen's website. Recommended Reading: Citroen C3 drivers told 'stop driving' due to airbag fault How you could get a roadside fine amid new DVSA changes DVLA issues warning to anyone who passed their driving test before 2015 You will need the vehicle identification number (VIN). You can find this: at point 1 on your MOT certificate in part 4 (vehicle details) at point E in the vehicle's log book (V5C) A spokesperson from Stellantis said that they were 'working to maximise' the number of vehicles it can repair each day, with priority given to those with urgent needs.