WSRP Calls For Emergency Suspension Of The Long-Term Care Tax
BELLEVUE — The Washington State Republican Party (WSRP) today, called for an immediate suspension of the Long-Term Care Tax that is set to take effect on January 1st, 2022, with a qualifying opt-out period ending on November 1st, 2021.
“The Long-Term Care Tax will take millions of dollars out of workers’ paychecks, cause undue strain to small businesses, and it will not even accomplish what it is intended to. Remember, this is a law that was passed over two years ago and the Inslee Administration is still changing the language, mere months before it is set to take effect,” said WSRP Chairman Caleb Heimlich. “Even Democrats in the State Legislature realized just how bad this law is and passed an amendment with bipartisan support allowing for residents to opt-out by purchasing private plans before November 1st. Except, no one knows for sure which of these plans will qualify because the law is not final and the underwriting process could take months. Washingtonians are now left to frantically look to buy insurance they may not ever need and the plan they might purchase could easily end up not even opting them out of the tax. This is not good governance – it is a state-sponsored cash grab and it needs to be stopped before anymore damage is caused. Everyone that works in Washington State needs to write to Governor Jay Inslee, Speaker Laurie Jinkins, and Leader Andy Billig telling them to stop this unfair tax!”
The Long-Term Care Trust Act will take effect starting on January 1, 2022, levying a 0.58% payroll tax, meaning, for an individual making $100,000, $580 per year will be deducted. There is no maximum on what can be collected through this payroll tax. Starting January 1, 2025, Washington residents that have fully or partially vested will be eligible to begin receiving benefits. This program will pay a maximum of just $36,500 over the course of a vested person’s lifetime. Employees who work in Washington but are not residents must pay the tax but are not eligible for any benefits.