Gov. Inslee proposes capital gains tax, more cigarette taxes

OLYMPIA, Wash. (AP) — The governor is proposing a new capital gains tax to help address a projected state budget gap of more than $2 billion over the next two-year budget cycle.

Gov. Jay Inslee says a new tax on the sale of stocks, bonds and other assets would raise nearly $800 million during the 2015-17 budget period.

Another new tax proposed by the governor earlier this week would raise $380 million by charging polluters for carbon emissions.

The governor also wants to increase the state cigarette tax by 50 cents a pack, and repeal five tax breaks.

Inslee says the state needs new money is needed to address environmental issues and answer a Supreme Court order to better pay for public schools.

The governor's proposed tax and revenue changes add up to about $1.4 billion and are part of an overall $39 billion operating budget.