A Working Families Credit for Washington State

Thousands of families in Washington face daily challenges to making ends meet—

low-wage incomes are insufficient to cover the high costs of healthcare, childcare, and job-related expenses. To make matters worse, these families pay higher percentages of their incomes in state and local taxes than wealthier residents.

A Working Families Credit will cut taxes for more than 350,000 Washington residents by adding 10 percent to their federal Earned Income Tax Credit (EITC) refund. It will:

• Reduce the tax bill for low-wage workers by as much as 30 percent, mitigating the unfairness of Washington state’s regressive tax structure.
• Boost a minimum-wage worker’s earnings by up to 31 percent when combined with the federal credit, supporting families who are working to move out of poverty.
• Bring additional income to communities across the state, particularly rural areas and smaller towns.

A Working Families Credit for Washington State--Policy Brief

• Full report
• 1-page summary
• List of Working Families Credit amounts by legislative district

In Focus: 1-page snapshots of key concepts

• Nearly all of the tax cut is given to families with children
• Sixty-one percent of parents getting the tax cut work full time

Media

• Article, Tacoma News Tribune, March 16, 2008                                                                           Legislative tally: 60 days, 335 bills

• Article, The Columbian, March 16, 2008                                                                                         Legislature can point to successes, but some promises unmet

• Article, Spokesman Review, March 11, 2008

  Working families targeted for help

• Article, Seattle Times, March 8, 2008

  Strings attached to tax-break bill

• Article, Seattle PI, March 7, 2008

  WA lawmakers strike deal on "working families" tax credit

• Article, Skagit Valley Herald, March 7, 2008

  State lawmakers strike deal on ‘working families’ tax credit

• Article, Tri-City Herald, March 7, 2008

  Lawmakers strike deal on working families tax credit

• Article, Tacoma News Tribune, March 8, 2008

  Tax rebates loom, but not funding

• News Story, KOMO TV, March 7, 2008

  Lawmakers Strike deal on working families tax credit

• Article, Everett Herald, March 7, 2008

  Some in Washington state could see sales tax rebate

• Article, Bellingham Herald, March 7, 2008

  Lawmakers Strike deal on working families tax credit

• Guest Column, March 3, Seattle Times

  Helping working families a good deal for everyone

• Guest Column, March 2, Tacoma News Tribune

  TNT errs in opposing state tax rebate for working families

• Guest Column, Puget Sound Business Journal, February 21, 2008

  "Reduced revenue forecast mustn't derail state's goals"

• Article, Bellingham Herald, February 20, 2008

            "Senate Democrats want to give a state tax rebate, too"

• Article, Columbian, February 20, 2008

             "Sales tax rebate bill passes Senate"

• Article, KOMO 4 TV, February 20, 2008

            "State Senate Democrats pass tax rebate bill"

• Article, The News Tribune, February 20, 2008

            "Senate approves $60 million for state tax rebate program"

• Article, The Olympian, February 20, 2008

            "Senate Passes Rebate for Low-Income Workers"

• Article, Seattle P-I, February 20, 2008

            "WA Senate Democrats pass tax rebate bill"

• Article, Seattle Times, February 20, 2008

            "WA Senate Democrats pass tax rebate bill"

• Article, Spokesman-Review, February 20, 2008

           "Bill aim to help Washington's working families"

• Article, Tri-City Herald, February 20, 2008

             "WA Senate Democrats pass tax rebate bill"

• Article, The Olympian, February 20, 2008

"Senate passes rebate for low-income workers"

• Article, The Olympian, February 6, 2008

"Hurdles persist for tax aid measure"

• Guest Column, The Columbian, February 1, 2008:

"Local View: Tax cuts target those who need it most"

• Article, The Olympian, January 28, 2008:

"Bill aims to aid low-income"

• Article, The Columbian, January 28, 2008:

"Capital Views: Rebate may be first step on reform"

• Video, The Olympian, January 25, 2008:

Brad Shannon, political editor, discusses the Working Families Credit bill. 

• Article, The Seattle-Times, January 25, 2008:

"State Democrats consider sales-tax credit"

• Article, The Olympian, January 24, 2008:

"More tax relief could be on the way from the state"

(originally published in Spokesman-Review, also published in Bellingham Herald)

• Press release, Budget & Policy Center, January 23, 2008:

State Legislative Leaders Propose a Working Families Credit

• Editorial, Seattle Post-Intelligencer, January 9, 2008:

"Legislative Outlook: Real Tax Relief" 

Other sources

• stateEITC.com: research and resources about state EITCs
• The Brookings Institution: map of federal EITC claims in Washington state
• Center on Budget and Policy Priorities: " A hand up: how state earned income tax credits helped families escape poverty in 2006," report describing similar credits in other states
• San Francisco Federal Reserve Bank: "From Refunds to Assets: Leveraging the Benefits of the Earned Income Tax Credit," report linking tax credits to asset development
• The Brookings Institution: Earned Income Tax Credit Topic Page, research on the federal EITC