The state’s top Republican legislative leaders on Monday announced a proposed bill that would allow Washington workers to opt out of the state’s new long-term care payroll tax.
“When you actually do the math, it doesn’t work out. That’s what we have here, a solution that simply doesn’t work, and the people of the state of Washington know it doesn’t work,” Sen. John Braun, R-Centralia, said during a virtual press conference.
The first-in-the nation program, the Washington Cares Act, allows eligible individuals to collect a lifetime benefit of up to $36,500. That money, which is funded through a 0.58 percent payroll tax that went into effect July 1, can be used to pay for in-home nursing care, rides to the doctor and other health needs.
The new tax equates to $58 per year for every $10,000 earned. For someone making $50,000 per year, the tax equals $290 per year or $24.17 per month.
The Democratic-led Legislature pushed the long-term care bill through in 2019. During the 2022 session, rollout of the program was delayed 18 months to address financial solvency and other issues with the program.
Braun, who represents the 20th District, said a mandatory payroll tax creates yet another burden for workers already struggling to survive. Instead, he said the Republican-sponsored bill would make participation optional.
“It’s just one more step making Washington state unaffordable for a whole group of workers,” he said. “If it’s really such a great idea, the people of state of Washington are capable and smart enough to decide for themselves.”
State Sen. Lynda Wilson, R-Vancouver, from the 17th District, joined Braun for the virtual press conference. Wilson, the Republican leader on the Senate Ways and Means Committee, said there was good reason to delay the program.
“Most Republicans voted last year for the bill that delayed the payroll tax collection until after our 2023 legislative session. I did so in part because the longer delay allowed more time to consider adjustments that might deal with the flaws in this program — one of the biggest of which is the lack of portability,” Wilson said.
In addition to being flawed, Wilson said the program is unpopular with many voters. She said a 2019 advisory vote showed more than 60 percent of voters didn’t want the long-term care program, but Democratic lawmakers didn’t listen.
“We need to start listening to them. The ability to opt out now is a good idea,” she said.
Braun said a publicly funded program isn’t needed because private insurance coverage is already available and often provides better coverage for the same or better cost.
In addition to making the program optional, the bill would allow individuals who opted out prior to Dec. 31, 2024, to receive a refund for any long-term care taxes paid.
While the 2024 legislative session start date hasn’t been announced yet, Braun the bill will be prefiled in December.
