Washington voters are deciding on the fate of the state's capital gains tax this election. The tax supports child care and schools.

If passed, Initiative 2109 would repeal a 7% tax on capital gains for assets worth more than $250,000. Supporters of the repeal said capital gains taxes are volatile and it could lead to an income tax down the road.

Wesley Tharpe, senior adviser for state tax policy at the Center on Budget and Policy Priorities, noted 42 states have capital gains or income taxes and capital gains taxes are one of the most effective tools to balance out tax codes.

"Things like personal income taxes, corporate income taxes, capital gains taxes, those are going to collect a bit more from those at the top," Tharpe explained. "That helps balance out the fact that lower- and middle-income people are contributing a much larger share in things like sale taxes and fees - and to some degree, property taxes as well."

Last year, Washington state's capital gains tax pulled in about $786 million. The first $500 million collected from it goes toward schools, early learning and child care. Money collected beyond it is used for school construction. Washington has historically had one of the most regressive tax systems in the country.

Suzette Espinoza-Cruz, a Washington state lead volunteer for the Save the Children Action Network, said early childhood learning has benefited her niece's child, who was ready on his first day of kindergarten because of the state's Early Childhood Education and Assistance Program. Her niece's other child needed help in school and Espinoza-Cruz emphasized she was able to get help.

"What worries me about Ballot Initiative 2109 is that programs that are supplementing students' learning could be cut if we have less funding available for our pre-K through 12 system," Espinoza-Cruz stressed.

Tharpe pointed out there would be long-term effects from repealing the capital gains tax from investing less in quality education, early learning and child care.

"You're going to wind up down the road with a less competitive workforce, communities that are not as attractive of places to live and work," Tharpe projected. "There really is some significant economic risk to taking away that source of revenue for those public priorities."

Finding appropriate placements for youths entering Ohio's child welfare system has become increasingly difficult.

Rachel Reedy, outreach and member engagement manager for the County Commissioners Association of Ohio, said the complex needs of children in the system, ranging from behavioral and mental health care to justice involvement, require specialized placements, which can drive up costs.

"Across the state, we have just heard more and more about the challenges in finding affordable, accessible and appropriate placements for our youths coming into our child welfare system," Reedy reported.

The challenges are compounded by rising costs, even as fewer children are entering care. County commissioners play a critical role in funding child welfare through a combination of federal, state and local dollars, including property tax levies in some areas.

A lack of trained professionals is another significant obstacle. Reedy elaborated on the capacity challenges within the system.

"We need workforce supports as well," Reedy urged. "When you do not have enough workforce in the system and facilities available, that leads to these capacity challenges, which, in a sense, drives up the cost."

She highlighted initiatives at the state level, such as efforts to encourage students to pursue careers in social work and human services. However, the solutions take time, underscoring the urgency for collaboration at all levels. Reedy added addressing the challenges requires a united effort from local communities, state leaders and lawmakers to ensure every child receives the care they need.


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In his 1963 "I Have a Dream" speech, Dr. Martin Luther King Jr. condemned the poverty hindering Black Americans' rights and decades later, a new report found children of color still bear the weight of poverty.

The analysis by the Economic Policy Institute showed in 2023, Black, Hispanic, American Indian and Alaska Native children were three times more likely than their white peers to live in poverty. In Missouri, there's a nearly 17% child poverty rate, just above the national average revealing risks to children's overall well-being.

Ismael Cid-Martinez, economist at the Economic Policy Institute and the report's co-author, said a major cause centers around employment disparities.

"Black workers are more likely than their non-Hispanic white peers to be unemployed," Cid-Martinez reported. "Then when they do obtain some form of employment in the labor market, they're likely to earn less than their peers."

The report also revealed Asian children are twice as likely as their white peers to live in poverty. Cid-Martinez stressed a key solution is implementing policies to ensure the social safety net effectively addresses the material needs of families.

According to the report, the expanded Child Tax Credit cut poverty for children of color by half from 2019 to 2021, lifting more than 700,000 Black children and 1 million Hispanic children out of poverty. However, the gains largely vanished when lawmakers did not extend the tax credit.

Cid-Martinez emphasized stronger unions in the labor market would help.

"Unions help ensure that working parents have jobs where they have the necessary benefits and the flexibility of hours that they need to provide care for children," Cid-Martinez noted.

Recent data showed Black Missourians face a 13.1% unemployment rate, nearly five times higher than white residents. Cid-Martinez added poverty figures reflect economic progress, highlighting King's dream of economic equality remains unfulfilled.


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New York legislation could help working families in the state cope with rising prices.

The Working Families Tax Credit would combine a patchwork of tax credits, the current Empire State Child Credit, the Earned Income Tax Credit and several others. The bill would also raise the maximum tax credit to $1,600 with a $100r minimum credit per child, regardless of family income.

Sen. Andrew Gounardes, D-Sunset Park, the bill's sponsor, said financing the credit will not cost much in the state's budget.

"There are a number of loopholes that exist in the state tax code we can look to close to pay for this," Gounardes pointed out. "But there's no reason why New York should continue to have three of the 'top 10 worst states for child poverty,' given the vast amounts of money we spend in our state every single year clearly are not achieving the results we need it to achieve."

He noted feedback on the bill has been positive from lawmakers and New Yorkers but it is the third time this proposal has been introduced. Gounardes explained competing budget priorities are the primary challenge to getting it passed and stressed he is confident.

The attempt to pass the measure comes as Gov. Kathy Hochul announced plans to expand the state's Child Tax Credit. Hers would raise the credit to $1,000 annually per child under age 4 and $500-dollars for children ages 4-16.

Gounardes supports Hochul's plan and said a Working Families Tax Credit would put even more money in families' pockets.

"Kids, even though it might be more expensive when they're younger, they don't stop needing things," Gounardes pointed out. "They don't stop needing school clothes, school supplies; they don't stop eating, they don't stop needing heat and a roof over their head. So, I think the governor's proposal is a great start to a conversation about what will it take to support families who are struggling the most."

A 2023 University of Washington report found almost two of five households in New York cannot afford basic needs and more than 2 million New York households struggle to get by solely on their earnings.


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