Back in 2008, the legislature approved the Working Families Tax Rebate – a provision that would have given families supported by a low-wage worker a portion of what they pay in sales tax back.
Nearly five years later, Rep. Chris Reykdal’s (D-Tumwater) legislation to finally keep our promise to working families received strong support in a House Finance Committee hearing.
Rep. Reykdal’s bill would close the sales tax loophole on out-of-state visitors to fund the Working Families Tax Rebate. Ending this exemption would generate over $30 million per year, and would give more than 400,000 hard-working Washington families a small tax break.
“Washington’s dependence on the sales tax has always shifted an unfair burden on the working class, which has been compounded by the economic recession. It doesn’t have to be this way,” said Rep. Reykdal. “We can put money back into the pockets of Washington families who we know will spend the extra dollars at our grocery stores, pizza parlors and other local retailers.”
This change would benefit every legislative district in the state – especially those who have been hit particularly hard by the recession.
The Working Families Tax Rebate dovetails on the federal Earned Income Tax Credit – a highly successful tool for helping families move into the middle class.
The Earned Income Tax Credit has proven particularly beneficial to kids. The additional resources leading to a child’s improved health, as well as improved learning and future opportunities.
“Funding the Working Families Tax Rebate will benefit more than 400,000 people in every city, every legislative district, and every corner of our state,” said Remy Trupin, Executive Director of the Washington State Budget and Policy Center. “This bill presents an opportunity to make a smart choice, as the Working Families Tax Rebate is a small investment that can make a huge difference in the lives of those who work hard and pay taxes.”
Because the measure was initially approved in 2008, the Department of Revenue is ready to efficiently administer the rebate using the Earned Income Tax Credit as a model.