OLYMPIA, Wash. – Washington state lawmakers are looking at a tax-credit proposal that would address a state tax code that's unbalanced.

The Institute on Taxation and Economic Policy recently called the Evergreen State's tax system the "most regressive in the nation," with the lowest income workers paying 18 percent of their wages and the highest paid workers contributing only 3 percent.

Kelli Smith, senior policy analyst with the Washington State Budget and Policy Center, maintains the Working Families Tax Credit proposal would be one of the most effective tools for combating poverty.

"This policy as we've proposed it would reach nearly 1 million households in Washington state and give folks an income boost, and we know that that's going to pay dividends down the road," Smith states.

The tax credit would provide an average of $350 in refunds on the state sales tax. It's modeled after the federal Earned Income Tax Credit.

Smith notes this proposal goes further than that – it would also expand the definition of workers who qualify for the credit to people without children, family caregivers and immigrants.

The Senate Committee on Ways and Means holds a public meeting on the bill Thursday,

State Sen. Joe Nguyen, sponsoring the Senate version of the bill, says it would provide a boost to communities of color, which are disproportionately on the low-end of the income scale. He says the refund may not sound like a lot of money, but it could help many Washingtonians make ends meet.

"The reason why this is so important is that we're talking about folks who would be able to use this and stay housed, or folks who would be able to use this and pay for food,” he points out. “Folks who will be able to use this and potentially pay for child care for their kids and get another job, as well."

Nguyen notes that a similar measure was passed in 2008 but was never funded. He believes the legislature can find a way to fund it this time around, perhaps through a capital gains tax or increased business and occupation tax. He says the goal is to right a wrong in the state's tax code.

"You're basically punished for being poor,” he states. “So, what I really want is to kind of level the playing field, so that we all have an opportunity to thrive and then live with dignity. And I think this a huge step towards that."

The measure has gained support from groups such as Moms Rising, SEIU 775 and the Washington State Coalition Against Domestic Violence.


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The Indiana Chamber of Commerce outlined six key priorities for lawmakers ahead of the legislative session in January.

Rather than releasing detailed policy positions, the Chamber emphasized broad focus areas, including workforce, education, economic growth, infrastructure, quality of place and community health.

Phil GiaQuinta, D-Fort Wayne, House Minority Leader, responded to the Chamber's priorities, highlighting the need to address child care as a factor in economic development.

"We talk about economic development with things that impact economic development here in the state. Child care is really one of those," GiaQuinta contended.

The organization stressed the critical role of affordable child care in workforce development, citing a report estimating Indiana loses $4.2 billion annually, including $1.7 billion in tax revenue due to child care challenges. High costs force some parents out of the workforce, straining the state's economy.

Statehouse leaders acknowledged the issue but differ on solutions. Democrats argued child care deserves more state investment, while Republican leaders believe the private sector should play a larger role.

Todd Huston, R-Fishers, Speaker of the House, said businesses should not expect the state to solve their child care problems entirely.

"They've done a lot of different things to try to support families and young families. We will continue to do that," Huston stated. "But I think we also have to set a level of expectations that we're not going to; the state's not going to be funding all universal pre-K."

The Chamber plans to release detailed policy proposals in January, aiming to guide lawmakers toward strategies to strengthen Indiana's economy and workforce.


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North Dakota is no stranger to public pension debates. States face pressure to keep retirement systems well-funded and new data show most Americans place great value on such benefits for both government and private-sector workers.

According to the National Institute on Retirement Security, 86% of Americans believe all workers, not just those employed by state and local governments, should have a pension. There are similar approval levels when asked how important public pensions are in recruiting teachers and public safety workers.

Dan Doonan, executive director of the institute, suggested it is not too surprising to see the results.

"Pensions, along with other benefits, are part of creating that culture of careers and not jobs," Doonan explained.

Starting in January, North Dakota will close its main public pension plan for new hires, who will instead be offered a 401(k)-style benefit. The move followed debate over whether it was the right way to address a $1.9 billion unfunded liability. Backers argued it protects benefits for existing workers and taxpayers but skeptics contended it makes it harder to attract workers to the public sector.

Doonan noted the survey results overlap with the idea maintaining an experienced public-sector workforce is a good thing for community members and not just the employee and employer.

"In general, when public services are done well, they're often invisible, right?" Doonan emphasized. "We want good roads, we want safe communities, and I think Americans understand the role of having career public servants in terms of delivering those outcomes."

The Bureau of Labor Statistics said state and local governments employ about 20 million workers, which represents about 13% of the U.S. workforce.

As Nebraskans anticipate the upcoming holiday season, some might also be looking ahead to the 2025 tax season, which will include a new tax credit for family caregivers, including those looking after military veterans.

Starting in 2025, a new state law provides eligible family caregivers up to $2,000 in tax credits for out-of-pocket expenses. The cap increases to $3,000 if the family member receiving care has dementia or is a veteran.

Jina Ragland, associate state director of advocacy and outreach for AARP Nebraska, said those who served have access to care benefits through the Department of Veterans Affairs but added it sometimes is not enough.

"Because some of their service-related illnesses or injuries, they extend beyond what they're able to afford, or maybe what the coverage is through the VA," Ragland explained.

She pointed out it puts more pressure on loved ones assisting them on a daily basis. During National Veterans and Military Families Month, supporters of the new law hope more families will see if they are eligible. Ragland noted while it helps reduce the financial strain, greater awareness of resources is also needed, to help all family caregivers avoid burnout.

Ragland emphasized one example is providing caregivers information about where to turn for guidance when a loved one is first discharged from a hospital. She argued entities at all levels need to maintain progress, because their outreach shows a demand for solutions.

"Over 90% of Nebraskans say that they want to age in place with the lowest level of care," Ragland reported. "In order to do that, oftentimes we have to rely on family caregivers."

There are no age restrictions to qualify for the tax credit. As for eligibility factors, the law includes an income limit of $50,000 dollars for individuals and $100,000 for married couples.