The Working Families Tax Rebate, passed into law in 2008, could cut taxes for more than 350,000 working families in Washington State by adding ten percent to their federal Earned Income Tax Credit refund. The rebate reduces the tax bill for low-wage workers by as much as 30 percent, helping to mitigate the unfairness of our state’s regressive tax structure and offering a form of economic security to low-income Washingtonians. It mostly benefits working families; 96 percent of eligible recipients are families with children. The rebate also drives additional income into communities across the state, especially in rural and small towns.
Thousands of families in Washington face daily challenges to making ends meet low-wage incomes are insufficient to cover the high costs of healthcare, childcare, and job-related expenses. To make matters worse, these families pay higher percentages of their incomes in state and local taxes than wealthier residents.
A Working Families Rebate will:
- Reduce the tax bill for low-wage workers by as much as 30 percent, mitigating the unfairness of Washington State’s regressive tax structure.
- Boost a minimum-wage worker’s earnings by up to 31 percent when combined with the federal credit, supporting families who are working to move out of poverty.
- Bring additional income to communities across the state, particularly rural areas and smaller towns.
For more information on the Working Families Rebate, click here.
