A payroll tax in Washington state that is designed to establish a fund for older residents’ long-term care needs could be undone by voters this fall through a ballot initiative.
“WA Cares” is a payroll tax that is described as a “public long-term care insurance program” in which all working Washington residents contribute 0.58% of each paycheck to the associated fund. After 10 years of contributions, a long-term care benefit is accessible so long as there is an associated care need when requesting the benefit.
Those who qualify can begin accessing the benefit in July 2026, and they can access a benefit of up to $36,500 adjusted with inflation. Residents born before 1968 typically “have lower contribution requirements and benefits,” according to the state’s WA Cares Fund website.
But the mandatory payroll tax — created as part of the program by the Washington Legislature in 2019 — now faces an “existential threat” to its existence, according to advocates. A successful signature-gathering campaign has added a new voter initiative to the state’s ballot in the fall. Voters can choose to make the payroll tax voluntary.
Should that initiative be approved by Washington voters, what has been described as a “first-of-its-kind” effort to tackle issues of financial unpreparedness for long-term care needs by older Americans could be dealt a blow it would not recover from, according to advocates who wish to keep the payroll tax mandatory.
“Essentially, it’s framed as a choice, but it really kills the program,” according to state Rep. Nicole Macri (D) in a February interview with The Seattle Times. “[That’s] because like any other social insurance program like Medicare or Social Security, it depends on a broad, extremely broad, base of contributors in order for everybody to be eligible for a benefit.”
Recent polling to gauge voter interest in the initiative is not looking favorable for keeping the payroll tax mandatory. In polling conducted for the Seattle Times, 52% of likely voters would support the initiative to make the tax optional. Another 27% of likely voters said they would vote “no” on such an initiative, while 22% remain undecided.
While an overwhelming majority of Washington Republicans support the initiative (63%), so do a majority of Democrats (53%). The lowest share of support from those who identified their political affiliation came from Independents (43%).
Proponents for the campaign seeking to persuade voters to vote “no” on the initiative — and keep the payroll tax mandatory — expressed concerns about the poll’s language.
Long-term care is seen as a key attribute to allow seniors to age in place in their homes. A study by researchers at Rutgers University in New Jersey earlier this year found that home-based care is a leading outcome for older Americans, particularly as the U.S. population grows older more quickly.
