Rep. Schmick calls for repeal of long-term care tax

COLFAX – A local lawmaker is calling for the new long-term care insurance program passed in 2019 to be repealed just as the law goes into effect.

Rep. Joe Schmick, R-Colfax, joined Rep. Peter Abbarno, R-Centralia, in drafting legislation to repeal the tax.

“This program creates the false hope that people’s long-term care needs will be satisfied, when in fact, it will be woefully inadequate for the majority of those who eventually need long-term care,” Schmick said Monday, Nov. 1. “People who live out of state but work in Washington, those who are within 10 years of retirement, and workers who eventually move out of state, will be forced to pay into this program, but will likely never receive a benefit.”

Schmick is the ranking Republican on the House Health Care and Wellness Committee.

“Nearly 63% of voters said last year during an advisory vote this should be repealed,” he said. “And many people weren’t aware until it was too late to opt-out that they would be forced to surrender a portion of their wages to the state through a long-term care payroll tax.”

The new tax was created through passage of House Bill 1087.

The income tax of 58 cents per $100 of earnings kicks in Jan. 1; the opt-out deadline for those securing their own long-term care insurance was Monday, Nov. 1. If the tax remains, beginning in 2025, some workers could be eligible for a total long-term care benefit of $36,500.

“This is a regressive payroll tax that gives working families the illusion that their long-term care needs are satisfied with this ‘short-term’ limited care program,” Abbarno added. “The reality is that private investments provide greater benefits with greater flexibility in long-term care. Ultimately, this is an insolvent program that will lead to higher taxes or lower benefits.

“The real solution is to follow the will and vote of the people by repealing the payroll tax program and address long-term care by incentivizing investments, not punishing and marginalizing working families.”

Schmick’s bill will be among those filed for the 2021 legislative session, which begins Jan. 10 and runs 60 days.