A Primer on the Working Families Tax Rebate

The Senate proposal Tuesday morning includes the Working Families Tax Rebate, a policy developed by the Budget & Policy Center which would offer help to lower- and middle-income residents – those hit hardest by the economy.

The Budget & Policy Center has written extensively on the rebate the last couple of years:

• Working Families Tax Rebate Administration Would be Straightforward and Efficient: The Working Families Tax Rebate (WFTR) was signed into law in 2008. Once the rebate is fully funded and implemented, it will refund a portion of the state retail sales tax to as many as 370,000 Washington households. But how will it work? One of the great things about the rebate is how straightforward and efficient the administration will be. (Feb 22, 2010)

• How Much Would You Get? A Working Families Tax Rebate Calculator: This online tool allows you to calculate how much the credit would be worth based on filing status, number of children, and the amount of earned income.** For example, a married couple with two kids and $20,000 in wages would receive $429 dollars. A single parent with one child would receive $248. The minimum credit for those who are eligible is $50; the maximum is $567. (Feb. 3, 2010)
  

• Working Families Rebate would Benefit Families with Children:  About 97 percent of the total Working Families Tax Rebate would flow to working families with children. (Apr. 16, 2009)

• Working Families Tax Rebate: Benefits by Legislative District: The map below shows the share of tax filers who would have been eligible for the WFTR by legislative district. The districts with the highest percentages of eligible Washingtonians live in rural and small metropolitan areas. For example, one in four tax filers in the Yakima area would have been eligible for the WFTR. In general, all communities in Washington would benefit. (Apr. 6, 2009)
  

• Working Families Tax Rebate: A Tool for Economic and Fiscal Recovery:  The Working Families Tax Rebate is an effective tool the state can use as part of a strategy for economic and fiscal recovery. It builds on the highly successful federal Earned Income Tax Credit, which lifts millions of people out of poverty nationwide each year. (Apr. 3, 2009)