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The good news: four years ago Washington state created its own version of the federal Earned Income Tax Credit (EITC)—the Working Families Tax Rebate — a proven tool for helping families work their way into the middle class.
The bad news: the state still hasn’t put a dime into the program, so no one is getting the help they need.
That’s too bad, because The Working Families Tax Rebate would encourage better educational outcomes for Washington’s children and promote future economic prosperity through increased annual earnings later on in life.
Research shows the EITC – available only to working families — is a powerful way to improve economic security for children in lower- and moderate-income households. As the graphic below shows, investing an additional $3,000 in children living in low-income working households translates into increased work hours in their own adulthood and a 17 percent boost in their annual earnings.
Washington state could magnify these benefits by fully funding the Working Families Tax Rebate. It would boost the take-home pay of over 400,000 Washington households by up to $589 a year. And the impact on kids would be huge: 97 percent of the families helped have children.
Making critical investments in children and families today means significant gains in shared prosperity tomorrow. That’s good for everyone. For more information on the WFTR view our primer.