Washington State Budget & Policy Center: New Reforms Bring Balance and Equity to State’s Tax Code and Economy
ITEP Work in ActionPeople seeking a more equitable state tax code and stronger supports for parents scored major victories earlier this year in Washington state, after more than a decade of hard work and focused advocacy by community leaders. By enacting a new excise tax on extraordinary stock profits (capital gains) and an expansive new tax credit for residents with lower and moderate incomes, lawmakers brought some balance to Washington state’s notoriously inequitable state and local tax code. Revenues raised from the capital gains tax will be used to fund the Fair Start for Kids Act, an important new law that will make high-quality child care, preschool, and other early learning services more affordable and accessible to parents with young children while increasing support for the workers who care for them. These investments will strengthen our recovery and create major economic gains in the long run.