New Opportunity in Washington State
Nine states currently have no broad-based income tax and, as a result, their tax systems are among the nation's most regressive. This week, legislation was introduced in the most regressive of them all, Washington State, to create a "Working Families Tax Credit." According to the Washington State Budget and Policy Center, the credit would reduce taxes for more than 350,000 Washingtonians by allowing workers to claim a refundable earned income tax credit (EITC) that would be equal to ten percent of the federal credit. While several state have implemented EITCs, Washington could be the first where lawmakers are figuring out that the EITC is an effective measure even in a state with no income tax. The Seattle-Post Intelligencer is right to say that the implementation of this credit would help to offset the regressivity of the nation's most regressive tax structure. For more on this ground breaking legislative priority, read the Budget and Policy Center's full report here.
