Washington state aims to boost tax fairness by increasing participation in the Working Families Tax Credit to 50% of eligible families addressing poverty and inequality.
Washington State Aims to Boost Tax Fairness with Expanded Working Families Tax Credit
Washington state is aiming to ensure that half of all eligible families apply for and receive the Working Families Tax Credit by next year. This tax refund, worth up to $1,255, helps moderate and low-income families. Governor Jay Inslee calls this a major step towards tax fairness and one of the biggest tax cuts in the state’s history. Officials reported that 45% of eligible households claimed the credit in its first year.
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(photo: Dismantle Poverty in Washington)
Progress and Challenges in Reducing Poverty and Inequality
The Working Families Tax Credit created in 2008, only received full funding in 2021 through federal COVID-19 relief funds. Lori Pfingst from the Department of Social and Health Services noted that direct payments to families especially during the pandemic significantly reduced poverty and inequality. The relief checks lifted 196,000 Washingtonians out of poverty and helped reduce racial disparities.
Challenges remain especially regarding immigration status. About 10% of recipients lack Social Security numbers and use Individual Taxpayer Identification Numbers instead. To achieve 50% participation, the Department of Revenue recommends increased funding for media campaigns and partnerships with community groups to simplify the application process. These efforts are crucial as many eligible families have yet to apply, according to the report of The Center Square.
