The Seattle City Council today narrowly defeated an effort to create a 2% capital gains excise tax on profits over $262,000 made from the sales of stocks and bonds.

(The Center Square) – A proposed local capital gains tax in Seattle failed to pass out of the Select Budget Committee. The tax would have imposed a local 2% capital gains excise tax applicable to non-retirement financial gains over $250,000.

On Tuesday, Seattle City Councilmember Cathy Moore plans to present the city council with a new idea: A 2% capital gains tax. It’s a baby version of the 7% capital gains tax voters just upheld for Washington State.

Seattle City Councilmember Cathy Moore is proposing a 2% capital gains excise tax modeled on the Washington state tax that on Tuesday survived a ballot measure to nix it.

After WA voters rejected a measure to repeal the statewide capital gains tax, a Seattle City Council member plans to introduce a similar tax.

Cathy Moore proposed the 2% tax to protect housing and food assistance programs, based on the statewide model 63% of voters opted to keep this election.

Budget deliberations found "there's not a lot to cut" in next year's budget. "So that does leave us at the point where we do we need additional revenue," the sponsor of the bill said.