Washington state’s payroll tax, designed to fund the long-term care needs of older residents, could be eliminated by voters this fall via a ballot initiative.
“WA Cares” is a payroll tax described as a “public long-term care insurance program” in which all employed Washington residents pay 0.58% of each paycheck into a related fund. After 10 years of contributions, long-term care benefits will be available as long as there are relevant care needs when applying for benefits.
Those who qualify can take advantage of the benefit starting in July 2026, and they can receive up to $36,500 in benefits, adjusted for inflation. According to the WA Cares website, residents born before 1968 generally have “lower contribution requirements and benefits”.
But the mandatory payroll tax, enacted as part of the Washington Legislature’s 2019 plan, now faces an “existential threat,” according to supporters. A successful signature-gathering campaign has added a new voter initiative to the state’s fall ballot. Voters can choose to pay the payroll tax voluntarily.
A move billed as “unprecedented” to address the financial preparedness of older Americans for their long-term care needs could be dealt a blow from which it will never recover if the initiative is approved by Washington voters. Advocates of coercion claim.
“Essentially, it’s an option, but it really kills the program,” state Rep. Nicole Macri said in an interview in February. seattle times. “[That’s] Because like any other social insurance program like Medicare or Social Security, it depends on a broad, extremely broad base of contributors in order for everyone to be eligible for benefits.
Recent polls gauging voter interest in the initiative look unfavorable for keeping the payroll tax mandatory. In a Seattle Times poll, 52 percent of likely voters supported making the tax optional. Another 27% of likely voters said they would vote “no” on the measure, while 22% were undecided.
While an overwhelming majority of Washington Republicans support the initiative (63%), so do a majority of Democrats (53%). Among those who have stated their political affiliation, the lowest support is among independents (43%).
Supporters of the campaign, who are trying to persuade voters to vote “no” on the initiative and continue to impose a payroll tax, have expressed concerns about the wording of the poll.
Long-term care is seen as a key factor in allowing older adults to age comfortably at home. A study conducted by researchers Rutgers University New Jersey found earlier this year that home care is a leading outcome for older Americans, especially as the U.S. population ages faster.
