Business groups ask governor to intervene before long-term care tax takes effect

Sep 13, 2021, 9:11 AM

long-term care...

Eliseo Vera (L) speaks with his mother Esther Ortega, while they are reunited with social distance in a long-term care facility on March 22, 2021, in Los Angeles, California. (Photo by Mario Tama/Getty Images)

(Photo by Mario Tama/Getty Images)

A coalition of 165 employers, business groups, local governments, and labor unions is urging Gov. Inslee to intervene in the state’s long-term care insurance tax before it takes effect in January.

Unless a state resident has private, long-term care insurance by the end of October, most will have to pay the tax. All W2 employees who average 12.5 hours per week will start to see the deductions for a long-term care tax as of Jan. 1. A person earning $50,000 a year will pay $290 a year in additional taxes.

The benefits also include certain limits, including that it won’t move with you if you leave Washington.

People with their own care policies can opt out, but those cost thousands of dollars a year. Those policies also need to be in place before the end of October, and insurance agents are saying you should apply soon to ensure coverage.

Private long-term care insurance all but impossible to get ahead of new state tax

The coalition of business groups, in a letter to the governor, is urging the formation of a bipartisan legislative leadership group to address the numerous concerns with the long-term care tax, and to consider pausing collection of the new payroll tax.

The Legislature established the Long-Term Services and Supports Trust (LTSST) in 2019, but there were then changes to the legislation in the last two sessions. The letter states that those changes “have created a program that is unclear, insolvent, and does not address the actual long-term care needs of all Washington state residents.”

The members of the coalition support giving Washington residents options to provide for their long-term care needs, but argue that the current program “creates obstacles rather than options.”

Read the full letter here.

‘Difference is clear’ between new state payroll, capital gains taxes

This group isn’t the first to push back against the new payroll tax.

Cary Condotta, a former state representative, had previously told the Dori Monson Show that he thinks the tax should be optional, and he’s hoping to put that to a citizen vote. Condotta is one of the backers of a citizen-led initiative to stop the tax from going into effect.

Local News

King County Regional Homelessness Authority KCRHA 5-year plan...

L.B. Gilbert

KCRHA approves 5-year plan to address homelessness

The King County Regional Homeless Authority (KCRHA) unanimously voted Thursday to approve its new 5-year plan, which includes $250M for 2024.

12 hours ago

Don Bonker...

Bill Kaczaraba

Former Congressman Don Bonker remembered as a ‘peacemaker’

Known as a "peacemaker," former U.S. Representative Don Bonker, who represented Washington’s 3rd District from 1975-89, has died.

12 hours ago

queen anne road...

L.B. Gilbert

Utility company damages Queen Anne Ave, partially closing road

A private utility crew damaged a tunnel under a busy block of Queen Anne Avenue, and the road is partially shut down.

12 hours ago

muti-day fire lacey mushroom...

L.B. Gilbert

12-year-old arrested in connection to fire at Lacey mushroom farm

Lacey firefighters are looking at a multi-day fight against a fire that broke out Wednesday at an abandoned mushroom farm.

12 hours ago

(Photo from KIRO 7)...

Deedee Sun, KIRO 7 News

Two Northshore elementary principals on leave after alleged cocaine use

High on cocaine with a loaded gun – that’s what Redmond police say they saw when they confronted a local elementary school principal at a QFC.

12 hours ago

garfield high school threat...

Lisa Brooks

Garfield High School switches to remote learning Friday after threat

A threat in the area of Garfield High School in Seattle Thursday prompted the school's principal to dismiss classes early.

12 hours ago

Sponsored Articles

Men's Health Month...

Men’s Health Month: Why It’s Important to Speak About Your Health

June is Men’s Health Month, with the goal to raise awareness about men’s health and to encourage men to speak about their health.

Internet Washington...

Major Internet Upgrade and Expansion Planned This Year in Washington State

Comcast is investing $280 million this year to offer multi-gigabit Internet speeds to more than four million locations.

Compassion International...

Brock Huard and Friends Rally Around The Fight for First Campaign

Professional athletes are teaming up to prevent infant mortality and empower women at risk in communities facing severe poverty.

Emergency Preparedness...

Prepare for the next disaster at the Emergency Preparedness Conference

Being prepared before the next emergency arrives is key to preserving businesses and organizations of many kinds.

SHIBA volunteer...

Volunteer to help people understand their Medicare options!

If you’re retired or getting ready to retire and looking for new ways to stay active, becoming a SHIBA volunteer could be for you!

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.

Business groups ask governor to intervene before long-term care tax takes effect