The Daily Briefing – June 14, 2024

Taxed for nothing: Long-term care tax forces some workers to foot the bill for a benefit they will never realize.

Long-term Care Tax: Paying for a Benefit You May Never See

Under the current mandates of the long-term care tax, people working over 500 hours per year are taxed and earn credit, while those working less are taxed without gaining eligibility. In other words, some workers are taxed for a so-called benefit they can never access. But that’s not all. Lawmakers are now considering a new proposal to increase this threshold to 1,000 hours per year to offset costs related to making the benefit portable for those moving out of state. That means even more workers stuck paying for a benefit they will never realize.

Of course, this reality hasn’t kept Democrat lawmakers from – falsely – claiming all workers can have “peace of mind” due to their tax. As the Washington Policy Center recently put it:

“Part-timers are just one of many groups of workers who might not qualify for the long-term-care benefit that the state’s misleading marketing suggests they will. To be eligible, workers must pay the tax for 10 or more years without a break of five or more years. They also need to be health-qualified for assistance with at least three activities of daily life.

WA Cares is not a safety net for people needing financial help with long-term care.

“Medicaid is. WA Cares is a cost-shift to help the state’s mismanaged budget and a way to make taxpayers pay the wages of caregivers. One of the most disappointing things about WA Cares is that it will force low-income workers to pay for the long-term-care services used by people with ample resources and no need for taxpayer help. That’s backward.”

All the more reason for voters to repeal the tax by approving Initiative 2124 this November. Read more at the Washington Policy Center.

Washington’s Reality Check: Are We the Next California?

A recent op-ed in the Lynnwood Times asks a relevant question: Why are people leaving California and could it happen here in Washington? The answer – under our state’s current policies – is “yes.” The op-ed highlights a Demographia’s study by Wendell Cox that points to increasing unaffordability of housing in our state. In fact, although not yet the most expensive, Washington is on track to become so due to current policies.

The study attributes high housing prices to policies that restrict growth on municipal peripheries, specifically citing Washington’s Growth Management Act (GMA) of 1990. While Washington’s population remains stable, other states with restrictive building policies, like California, are losing residents due to housing costs. Specifically, during the last few years, California’s population has declined significantly, impacting its state budget as high earners leave.

As the op-ed points out, due to major employers in Washington, our state hasn’t yet seen this decline but remains vulnerable to economic shifts, particularly in the tech sector. It’s time lawmakers revise the GMA, relaxing restrictions to help increase housing supply and reduce prices. The question is, will Washington learn from California’s experience or just repeat the same mistake? Read the full op-ed at The Lynnwood Times.

SCOTUS Hands Starbucks a Win

Starbucks scored a major victory at the U.S. Supreme Court and, in doing so, made it more difficult for the federal government to obtain court orders against companies interfering with unionization. The unanimous ruling “tightened the standards for when a federal court should issue an order to protect the jobs of workers during a union organizing campaign.” The National Labor Relations Board (NLRB) had argued that courts should grant temporary injunctions if deemed “just and proper,” a standard in place for over 75 years.

For its part, Starbucks emphasized the importance of consistent federal standards for employee rights. The case originated when Starbucks fired seven workers attempting to unionize in Tennessee, leading to a court order for their rehiring. Read more at The Seattle Times.

Overheard on the Interwebs...

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