Schmudget Blog
— filed under: ,

New Fact Sheet: Advancing Racial Equity through the Working Families Tax Rebate

Posted by Melinda Young-Flynn at Apr 03, 2017 02:50 PM |

By Asha Bellduboset, Narver fellow
 
It’s time for Washington state to have an equitable tax code. Currently, it disproportionately relies on people with low incomes while giving the wealthiest people tax breaks. That’s just upside down. What’s more, those most heavily burdened by our upside-down tax code are people with low incomes, many of whom are people of color. The Working Families Tax Rebate (WFTR) is an important tool to help turn our tax code right-side up and to help undo the systemic inequities that have created an uneven playing field for people of color.

The Washington state legislature enacted the WFTR in 2008, but it was never funded. It is one of the most effective ways Washington can work to correct our state’s reliance on regressive sales taxes that overburden lower-income families. The rebate uses the federal Earned Income Tax Credit (EITC) program, a powerful anti-poverty tool, as a basis for eligibility. The WFTR would provide qualifying low-wage workers with an annual boost to their income in the form of a tax credit.

Funding the WFTR would advance racial equity by supporting the economic security of Washingtonians of color who are working in low-wage jobs. Our new WFTR fact sheet shows how the WFTR would benefit families in all of Washington’s 39 counties from all racial backgrounds. For example, our analysis shows that, if the WFTR were funded:

Recipients would invest $98.5 million back into local economies throughout Washington state, nearly half (49 percent) of which would go to communities of color

The rebate would improve the lives of many children of color, given that 51 percent of qualifying children in EITC-eligible households are children of color

Approximately 498,000 Washingtonians in all 39 counties of the state would be eligible for the WFTR, which means residents in all counties would see some economic gain. 

[Click on image to see full PDF that includes this graphic] 

WFTR Advances Equity One-Pager

Take a look at our fact sheet for more information on how the Working Families Tax Rebate would advance equity for our state and its people. 

Document Actions
HIGHLIGHTS

Policy Summit You're InvitedSign Up and Save the Date!

We will host two Budget Matters policy summits this year – one in Spokane on October 31 (register now) and one in Seattle on December 6 (registration coming soon)! The Spokane summit, featuring Jared Bernstein of the Center on Budget and Policy Priorities, will focus on the impact of federal and state policy decisions on eastern Washington communities. The Seattle summit, featuring Glenn Harris of Race Forward, will examine what it would take to lift up everyone to advance progress in our state. Find out more.

Our Policy Priorities

Washington state should be a place where all our residents have strong communities, great schools, and the chance for a bright future. Our 2017-2019 Legislative Agenda outlines the priorities we are working to advance to build a better Washington.

Budget Beat!

Check out the Budget Beat webinars we hosted throughout the 2017 legislative session, including our most recent Budget Beat about federal budget proposals, featuring Louisa Warren of the Center on Budget and Policy Priorities, on our YouTube channel

Testimonies in Olympia

To advance our legislative priorities, the Budget & Policy Center team was in the state capitol throughout session testifying on a wide range of bills. Watch our testimonies on TVW:
Misha TVW