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Washington State Faces Debate Over Mandatory Long-Term Care Payroll Tax

Washington State Faces Debate Over Mandatory Long-Term Care Payroll Tax
Washington State Faces Debate Over Mandatory Long-Term Care Payroll Tax

In Washington state, a payroll tax known as “WA Cares” aims to fund long-term care for older residents. This program, established by the Washington Legislature in 2019, mandates that all working residents contribute 0.58% of their paychecks to a dedicated fund.

After a decade of contributions, individuals can access long-term care benefits if they need such care. The benefits, available starting in July 2026, can amount to up to $36,500, adjusted for inflation, with different requirements for those born before 1968.

Despite the intention behind WA Cares, the program faces significant uncertainty as a new voter initiative seeks to make the payroll tax voluntary. Advocates of the program warn that if the initiative succeeds, it could severely undermine or even dismantle what they consider a pioneering effort to address financial preparedness for long-term care.

The program’s viability depends on a broad base of contributors, akin to social insurance programs like Medicare or Social Security, to ensure that everyone can benefit.

Washington State Faces Debate Over Mandatory Long-Term Care Payroll Tax

Washington State Faces Debate Over Mandatory Long-Term Care Payroll Tax

The potential for the program to be overturned has prompted a heated debate. Recent polling indicates that 52% of likely voters are in favor of making the payroll tax optional, while 27% oppose the initiative, and 22% remain undecided. The data reflects a divided opinion, with notable support from Republicans and a majority of Democrats, though Independents show less support for the change.

Proponents of maintaining the mandatory tax argue that making it voluntary could jeopardize the program’s sustainability. They believe that the program’s success hinges on having a large, committed pool of contributors, which is essential for covering the long-term care needs of the aging population. Critics of the poll’s language suggest that it may not fully capture the implications of changing the tax status.

The importance of long-term care is underscored by research showing that home-based care is increasingly favored by older Americans as the population ages. Studies, such as one from Rutgers University, highlight the growing demand for such care solutions. As the initiative heads to the ballot this fall, the outcome could have significant implications for the future of long-term care funding in Washington state.

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