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Washington proposal to tax startup exits sparks backlash from Seattle tech leaders

(Bigstock Photo)

Startup leaders in the Seattle region say a new proposal to expand the capital gains tax in Washington state could spur founders and investors to build companies somewhere else.

SB 6229 (and a companion HB 2292) would apply the capital gains tax to profits from the sale of qualified small business stock, or QSBS, even when gains are fully exempt under federal law.

That means a startup founder or early employee who takes stock instead of a bigger salary would owe tax to the state when they ultimately sell the shares, which typically happens at acquisition or IPO. Investors who back early-stage startups would face the same tax.

Depending on the value of the equity, the proposal could translate into tens or even hundreds of thousands of dollars in taxes per person.

Hearings: There are public hearings scheduled on Tuesday, Jan. 27 for both bills. The House Committee on Finance will have a hearing at 8 a.m., while the Senate Committee on Ways & Means will meet at 4 p.m. Remote testimony is available for both hearings, as well as written testimony online for each bill.

What would change: QSBS is a long-standing federal incentive designed to reward the risk of starting and funding young companies. Founders, early employees, and investors can exclude up to 100% of eligible gains from federal capital gains taxes if they meet strict requirements, including holding the stock for at least five years and the company meeting federal asset limits at the time the stock was issued.

Washington’s existing capital gains tax law, approved in 2021, generally follows federal definitions of taxable gains and did not explicitly reject QSBS treatment.

SB 6229 would reverse that approach. The change would apply to gains earned on or after Jan. 1, 2026. The proposal would not affect federal taxes, which would continue to exempt qualifying gains under Section 1202 of the Internal Revenue Code.

Reaction: Amy Harris, director of government affairs for the Washington Technology Industry Association (WTIA), said the proposal β€œweakens one of the few policies Washington has that actually rewards startup risk.” Harris told GeekWire it β€œsends exactly the wrong signal, effectively telling homegrown startups to build in Washington, but plan their success somewhere else.”

Seattle-based venture capitalist Leslie Feinzaig called the proposal β€œcatastrophic” for entrepreneurs and early employees who make the β€œextraordinarily irrational, risky” choice to work at burgeoning startups.

β€œOn a local level, remove the advantage, and most would be entrepreneurs will either NOT start new businesses, or take their business elsewhere,” Feinzaig wrote on LinkedIn. β€œAnd would-be investors will allocate less to the state.”

Dave Parker, another longtime Seattle-area investor and advisor, shared a similar sentiment, noting in a LinkedIn post that the law would result in a β€œtalent drain.”

Counterpoint: But not all investors are voicing disapproval. In a response to Feinzaig’s post, Brian Boland, a former Facebook exec and founder of Delta Fund, argued that founders and investors would still receive a substantial tax advantage compared with the standard federal long-term capital gains rate, which tops out at 20%.

β€œThe bill moves from zero tax on gains which most people never get to experience to a smaller tax on gains,” Boland wrote. He added: β€œFor risk-taking entrepreneurs they take the risk expecting a larger upside and the ability to build their own Enterprise. That shouldn’t excuse them from participating in taxes that pay for infrastructure that they use to actually build their business. And they are still getting an incredible tax relief!”

Practical impact: Madhu Singh, managing attorney at Foundry Law Group who advises founders and early-stage companies, said the proposal could reshape how startups recruit talent and negotiate investment terms.

β€œIf that talent knows they could potentially be taxed and lose out on the full value of [QSBS], will they commit?” she noted.

Abe Othman, a Seattle-based researcher at startup investment platform AngelList, said the biggest risk may not be an immediate exodus, but a slow erosion of Washington’s startup pipeline.

β€œYou’d still see successful startups but they will be happy accidents, and nobody will relocate to start their company in Seattle,” he said. β€œThose effects wouldn’t be obvious for 10–to-15 years, but once they show up, they’ll be slow or impossible to reverse.”

A handful of other states β€” including California, Pennsylvania, Alabama, and Mississippi β€”Β don’t fully conform to federal QSBS treatment.

GeekWire contacted Sen. Noel Frame, the sponsor of SB 6229, for comment. We’ll update this story if we hear back. Five lawmakers are sponsoring HB 2292: Reps. April Berg,Β My-Linh Thai, JaniceΒ Zahn,Β Davina Duerr,Β and Kristine Reeves.

Larger tax landscape: The QSBS proposal is arriving amid broader debates over Washington’s tax structure and revenue needs. Washington, one of a few states without a personal or corporate income tax, is facing a budget shortfall of $2.3 billion in the current operating budget that runs through 2027, according to the Washington State Standard.

Washington’sΒ 7% tax on capital gainsΒ applies to gains above $278,000 from the sale of stocks and bonds, excluding revenue from real estate and retirement accounts, among other exceptions. Net payments from the tax came in at $560.6 million in 2024, up from $418.6 million in 2023.

Last year the state passed a bill that increased the capital gains tax byΒ creating a progressive rate structureΒ β€” 7% on gains up to $1 million, and 9.9% on gains above $1 million. That change was effective starting with tax year 2025.

This year, lawmakers are expected to consider a so-called β€œmillionaire’s tax” that would create an income tax on Washington state residents earning more than $1 million per year. Revenue from that tax would not be generated until 2029.

An analysis from the Tax Foundation concluded that the proposed millionaire’s tax β€œwould make the state increasingly undesirable for high earners, particularly in the state’s crucial tech sector.”

Washington state has the second-most regressive state and local tax system in the country, according to the Institute on Taxation and Economic Policy.

Reddit Lawyers Force Founder to Redact 'WallStreetBets' From Miami Event

By: BeauHD
Reddit has forced Jaime Rogozinski, the founder of infamous r/WallStreetBets, to strip the WallStreetBets name from an upcoming Miami conference after legal threats citing trademark rights. According to a press release, it's the "first known case of a social media company enforcing trademark control over a user-created community." From the report: After years of litigation, courts ultimately sided with Reddit in a decision now referred to as the "Rogozinski Ruling," a precedent that grants platforms broad authority to assert trademark ownership over user-created communities. That ruling now forms the basis for Reddit's demand that the words "WallStreetBets" be physically removed from the event. "They aren't afraid of the name being used," said Rogozinski. "If they were, they'd have to sue the internet. What they're afraid of is the creator hanging out with his creation. They're afraid of the community's independence. And they're afraid it's evolved into something bigger than a subreddit." The irony is difficult to ignore. The original subreddit counts around three million subscribers, while conservative estimates place more than seven million WallStreetBets participants spread across other platforms. For a movement that built its reputation confronting corporate overreach, Reddit's decision to extend its authority beyond the confines of its web-based platform, reaching into real-world gatherings to police culture it did not create, risks stirring a hornet's nest with a long memory and a track record of collective action. The event formerly known as WallStreetBets Live, will proceed as scheduled on January 28-30 in Miami. In compliance with Reddit's demands, all references to the name will be physically redacted on-site. "Reddit's lawyers did one thing right," Rogozinski continued. "They proved exactly why we need a decentralized future. This event has become a live case study in what's broken about modern social media. Platforms can deplatform creators, and now, with courts backing them, they can appropriate what users build."

Read more of this story at Slashdot.

Apple Launches AirTag 2 With Improved Range, Louder Speaker

By: BeauHD
Apple has launched a new AirTag 2 that features improved range, a speaker that's 50% louder, and expanded Apple Watch-based tracking. Pricing stays the same at $29 (or $99 for four). 9to5Mac reports: The new AirTag comes with an upgraded second-generation Ultra Wideband chip for improved range, including when using Precision Finding. From Apple Newsroom: "Apple's second-generation Ultra Wideband chip -- the same chip found in the iPhone 17 lineup, iPhone Air, Apple Watch Ultra 3, and Apple Watch Series 11 -- powers the new AirTag, making it easier to locate than ever before. Using haptic, visual, and audio feedback, Precision Finding guides users to their lost items from up to 50 percent farther away than the previous generation. And an upgraded Bluetooth chip expands the range at which items can be located. For the first time, users can use Precision Finding on Apple Watch Series 9 or later, or Apple Watch Ultra 2 or later, to find their AirTag, bringing a powerful experience to the wrist." Another key upgrade with the new AirTag is an improved speaker, which should also make the accessory easier to find. Apple says: "With its updated internal design, the new AirTag is 50 percent louder than the previous generation, enabling users to hear their AirTag from up to 2x farther than before." Apple also touts privacy and security improvements with the new AirTag: "Designed exclusively for tracking objects, and not people or pets, the new AirTag incorporates a suite of industry-first protections against unwanted tracking, including cross-platform alerts and unique Bluetooth identifiers that change frequently."

Read more of this story at Slashdot.

TikTok Alternative 'Skylight' Soars To 380K+ Users After TikTok US Deal Finalized

By: BeauHD
Skylight, an open-source, TikTok-style video app built on the AT Protocol, surged past 380,000 users after last week's shake-up around TikTok's U.S. ownership and privacy concerns. TechCrunch reports: Launched last year and backed by Mark Cuban and other investors, Skylight's mobile app is built on the AT Protocol, the technology that also powers the decentralized X rival Bluesky, which now has north of 42 million users. Skylight, co-founded by CEO Tori White and CTO Reed Harmeyer, offers a built-in video editor; user profiles; support for likes, commenting, and sharing; and the ability for community curators to create custom feeds for others to follow. The app now has over 150,000 videos uploaded directly to the platform. It can also stream videos from Bluesky because of its AT Protocol integration. Harmeyer said Saturday that 1.4 million videos were played on the app the day before, up 3x over the past 24 hours. The app had also seen sign-ups increase more than 150%. Other noteworthy stats include over a 50% increase in returning users, over 40% rise in video played on average, and over 100% increase in posts created. This surge was likely triggered by concerns over TikTok's change in ownership and its unfortunately timed technical glitches. [...] Over the weekend, Skylight's CEO, Tori White, said the app added around 20,000 new users and is continuing to grow. So far this January, the app has seen around 95,000 monthly active users. "We've seen what happens when one person dictates what's pushed into people's feeds," White told TechCrunch. "Not only does it harm a creator's connection with their followers, but the entire health of the platform. That's why we built Skylight Social on open standards. We wanted creator and user power to be guaranteed by the technology. Not an empty promise, but an irrevocable right."

Read more of this story at Slashdot.

Early look shows Apple’s Liquid Glass-style blur effects coming to Android 17

Early Android 17 visuals suggest Google is experimenting with blur and transparency inspired by Apple’s Liquid Glass design, hinting at a softer, more layered interface that could reshape how system menus and overlays look.

The post Early look shows Apple’s Liquid Glass-style blur effects coming to Android 17 appeared first on Digital Trends.

How To Download Netflix Movies On A Laptop In 2026 (Windows & Mac)

By: RP Staff

Preparing for a long flight or train ride, you search for how to download Netflix movies on a laptop, expecting a simple click-and-save process. Instead, you find yourself in a frustrating situation, especially as a Mac user, discovering that the download button is nowhere to be found.

The post How To Download Netflix Movies On A Laptop In 2026 (Windows & Mac) first appeared on Redmond Pie.

Save up to $6,000 on Samsungs best TVs before the big game

three samsung tvs on blue graphic background

Best Samsung TVs on sale ahead of the big game

Best OLED TV deal
Samsung 65-inch S95F OLED TV
$2,299.99 (save $1,000)
Samsung 65-inch S95F OLED TV

Best QLED TV deal
Samsung 75-inch QN90F QLED TV
$1,799.99 (save $1,200)
Samsung 75-inch QN90F QLED TV

Best the Frame TV deal
Samsung 75-inch The Frame Pro
$1,999.99 (save $1,200)
Samsung 75-inch The Frame Pro

Football and Bad Bunny fans alike can agree on the importance of having the best screen possible to view the big game.

With just under two weeks to go until the New England Patriots take on the Seattle Seahawks, Samsung is helping with that goal, putting many QLED and OLED TVs on sale, with savings of up to 50%.

Below, we've gathered some of the best deals from the sale. Most of the TVs are on sale in multiple sizes (though some have sold out). All that to say, if you like the model but are looking for a smaller or larger size, be sure to click around the available options.

Best OLED TV deal

Credit: Samsung
$2,299.99 at Samsung
$3,299.99 Save $1,000
Β 

Why we like it

The S95F is our TV expert's favorite OLED TV for bright rooms overall, thanks to its impressive peak brightness and anti-glare matte screen. If you're a fan of both the big game and gaming in general, you'll also appreciate the 165Hz found on this TV.

If the above sounds appealing, but an anti-glare screen sounds like overkill, you can also go for the S90F OLED β€” the 77-inch version is on sale for $1,999.99.

Best QLED TV deal

Credit: Samsung
$1,799.99 at Samsung
$2,999.99 Save $1,200.00
Β 

Why we like it

On this TV, you'll find a great color balance, a crystal clear picture, and no glare on the screen. Our sister site PC Mag (also owned by Ziff Davis) wrote in their review for the 65-inch Q90F that it offers a "stunning picture for a very high price." Thanks to this Big Game deal, you get to take $1,200 off that price.

Best the Frame TV deal

Credit: Samsung
$2,000.02 at Samsung
$3,199.99 Save $1,199.97
Β 

Why we like it

Generally speaking, this will be the best art TV you can grab for bright rooms, according to our TV expert. That's especially important for a TV meant to be used as a display piece when not in use. It is worth noting that this TV does have a higher input lag and limited contrast, meaning the picture won't be the best for movie watchers and gamers. Still, if you've had your eye on an art TV and having the best possible picture isn't the highest priority for you, this is a solid deal.

More Samsung TV deals

75-inch+ TVs

85-inch+ TVs

98-inch+ TVs

Sony drops 2 new Bluetooth turntables for the first time in forever, days after pivoting away from TVs

Sony PS-LX3BT Bluetooth turntable spinning turquoise record on shelf

Sony has announced two new Bluetooth turntables after seven years of radio silence.

The original Sony PS-LX310BT developed a cult following in that time as one of the few worthwhile beginner-friendly Bluetooth record players (along with the Audio-Technica AT-LP60XBT-USB). Now, instead of scouring Reddit for budget Bluetooth record player recommendations, those cautiously looking to replace their old Sony PS-LX310BT have two direct successors as an upgrade option: The $399.99 Sony PS-LX3BT (available to pre-order now) or the slightly more premium $499.99 Sony PS-LX5BT (coming this spring).

Unfortunately, the new record players come with a higher price than the original. For reference, the 2019 PS-LX310BT costs $448, but it was available for $199.99 for many years.

The relatively random announcement came just days after Sony announced that it was handing its home entertainment business (TVs, home audio gear) to TCL. The news didn't sound overly promising for anyone holding on to hope that Sony would ever make a new turntable. False alarm β€” the best Sony headphones aren't the only way to appreciate Sony's hi-fi expertise in 2026. Here's what to expect.

What's different about the new Sony Bluetooth turntables

As well as the beloved PS-LX310BT has aged, the technology is still creeping up on a decade old. The upgraded playback tech in the 2026 models includes expanded support for Bluetooth codecs like aptX and aptX-Adaptive, minimizing the amount of crucial sound details that are lost over a standard wireless connection. Both support 33β…“ records and 45s and feature built-in phono preamps to connect directly to a speaker system.

Sony PS-LX3BT wireless turntable spinning turquoise record on tabletop
The PS-LX3BT comes in a dark gray finish. Credit: Sony
Sony PS-LX5BT wireless turntable sitting on shelf of vinyls
The PS-LX5BT comes in black. Credit: Sony

The PS-LX5BT features a Moving Magnet cartridge, more precise stylus pressure, and a gold-plated audio jack that's said to elevate wired connections. This is clearly the option geared more toward stricter audiophiles, while the PS-LX3BT would be a great record player for beginners.

What's not different about the new Sony Bluetooth turntables

What hasn't changed in either is the fact the PS-LX3BT and PS-LX5BT are still both fully automatic, belt-drive turntables. That might be a bummer for some vinyl purists β€” the lowering of the needle by hand and nostalgic pre-track crackling play just as much of a role in the overall turntable experience as the quality of the sound itself.

However, as analog media makes a comeback, there's definitely room in the market for simpler automatic record players, especially ones with Bluetooth features. With these Bluetooth record players, you can enjoy the classic sound of vinyl records beamed directly to your favorite wireless headphones. And if you already have Sony headphones, connecting should be even easier.

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