Olympia, WA (STL.News) Gouv. Jay inslee today signed an economic justice legislative package, including the Working Families Tax Credit and the Capital Gains Excise Tax, which begins the process to make Washington’s reverse tax system more fair and more equitable.
The governor signed the package at the Tukwila community center surrounded by lawmakers, local elected officials and community groups.
“This is a day when Washington State begins to make progress in making our reverse tax system fairer and more equitable,” Inslee said Tuesday. “Today, we are taking action to remedy this outdated system where working families pay a much higher percentage of their income than those who earn much more.”
Currently, low-income Washingtonians pay 17% of their income in taxes, while the middle class pays 11% and the richest pay only 3%. Capital gains excise tax legislation will begin to straighten this upside down tax structure. It is estimated that less than a quarter of one percent (0.23%) of Washingtonians will pay the tax.
The governor also signed a law to implement and extend the tax credit for working families. By funding the tax credit for working families, the state will finally fulfill a promise made by lawmakers, which established the tax credit years ago but did not fully fund it at the time. .
The tax credit will provide a financial boost to about half a million families across the state and ensure that Washingtonians working hard to make ends meet have a little extra financial security.
“I want to thank all of the individuals, groups and workers involved for their hard work and years of effort on this very important piece of legislation that will help many Washingtonians,” Inslee said.