News Local Stimulation
posted by January 24 at 13:33 PMon
While the feds are offering up a tax rebate to stimulate the economy (which Erica thinks won’t do much to help lower-income workers), the libs in Olympia are proposing a bill that directly focuses on tax rebates for low-wage workers.
Sen. Craig Pridemore (D-49, Vancouver, Minehaha, Hazel Dell, Walnut Grove) has a bill—written by the left wingers at the Washington Budget and Policy Center—that would allow Washington taxpayers to take advantage of the Earned Income Tax Credit.
Lower-wage workers can already take advantage of the rebate on federal income taxes—Washington taxpayers got about $600 million back from the feds in 2004 through the EITC program.
Unfortunately, because Washington State doesn’t have an income tax (we’ve got a sales tax), minimum-wage workers haven’t been able to get similar rebate help out of our regressive system.
Higher-income workers can get state rebates by itemizing their tax returns based on expenses under our sales tax. No so for low-wage workers.
So, without an income tax here, how can low-wage workers get any state rebate?
Sen. Pridemore’s bill solves the problem by providing a state tax rebate equal to 10 percent of a taxpayer’s federal EITC credit.