During a Senate Ways & Means Committee meeting, Emily Choi-Greene, co-founder and CEO of Clearly AI, expressed her strong opposition to proposed capital gains tax legislation. She argued that the bills, specifically SB 6229 and HB 2292, would pose significant financial burdens on startup founders and early employees, potentially amounting to hundreds of thousands of dollars in new taxes.
The Washington State Legislature's proposals would extend capital gains tax to profits from the sale of qualified small business stock, undermining federal exemptions. Choi-Greene emphasized the risk her family took when founding Clearly AI, stating they are currently struggling to manage their startup's finances while also planning for their children's education.
Startup advocates, including Amy Harris from the Washington Technology Industry Association, warned that such legislation could drive entrepreneurs away from Washington, indicating that the state might not be conducive for business growth. Choi-Greene testified remotely, highlighting the implications of the bills for the local tech ecosystem.