January 14, 2013

Washington State Budget and Policy Center: The Working Families Tax Rebate

ITEP Work in Action

Washington State is in a deep economic recession. Working families are struggling to make ends meet as more and more people lose their jobs, their homes, and their health insurance. Businesses are struggling to survive as consumer spending plummets.

An unprecedented state budget deficit threatens to make the situation worse. Legislators have responded to the fiscal crisis by proposing deep cuts to the public supports that are most important during tough times. Not only are these proposed cuts harmful to the health and economic security of Washingtonians in the short term, they will have the long term effect of slowing down the overall economic recovery in the state.

A strategy to raise state revenue is needed to avoid dismantling our education, health, and economic infrastructures. But because of Washington State’s regressive tax structure, tax increases may unfairly impact lower income earners.

The Working Families Tax Rebate is a strategic response to both the economic and fiscal crises in Washington State. The WFTR will:

¦¦ Refund up to $500 of the state sales tax to over 350,000 households in Washington.

¦¦ Help families and communities recover from the economic recession.

¦¦ Offset the costs of a necessary revenue increase for lower income working families.

Read the Full Report (PDF)