Olympia, WA (STL.News) Gov. Jay Inslee today signed an economic justice legislative package, including the Working Families Tax Credit and the capital gains excise tax, that starts the process of making Washington’s upside-down tax system fairer and more equitable.
The governor signed the package at the Tukwila Community Center surrounded by legislators, local elected officials and community groups.
“This is a day where Washington state starts to make progress on making our upside-down tax system fairer and more equitable,” Inslee said Tuesday. “Today, we are taking steps to address this out-of-date system where working families pay a much higher percentage of their income than those who make a lot more.”
Currently, low-income Washingtonians pay 17% of their income in taxes while the middle class pays 11% and the wealthiest pay just 3%. The capital gains excise tax legislation will begin to right this upside-down tax structure. An estimated less than one-quarter of one-percent (0.23%) of Washingtonians will pay the tax.
The governor also signed legislation to implement and expand the Working Families Tax Credit. By funding the Working Families Tax Credit, the state will finally fulfill a promise made by the Legislature, which established the tax credit years ago but did not fully fund it at the time.
The tax credit will provide a financial boost for approximately half a million families across the state and will ensure that Washingtonians working hard to make ends meet have a little bit of added financial security.
“I would like to thank all the individuals, groups and labor involved for their hard work and years of effort on these very important pieces of legislation that will help many Washingtonians,” Inslee said.