New initiative will allow workers to avoid new state payroll tax
Former state Rep. Cary Condotta has introduced a citizens initiative to give people a choice regarding Washington state’s long term care (LTC) program and the payroll tax that goes with it. The legislature passed the law in 2019 and it will go into effect in January 2022. Employers will be forced to collect a tax of 58 cents per $100 of earnings and remit it to the state.
Condotta’s group has submitted I-1436 to the Secretary of State. Citizens will have through the end of the year to collect signatures on the petition. A copy of the initiative can be obtained here. I-1436 would make it optional to participate in Washington’s long-term care insurance.
He shared the news of the initiative petition on KVI’s John Carlson radio show Thursday morning. “You’re in a program that you’ll probably never see the benefit of,” he said.
Condotta listed several examples of flaws in the program. If you’re less than 10 years from retirement, you can’t get vested; yet you’ll still have to pay into it. If you move out of state, you can’t use the benefit as a resident of another state. “Everybody pays the tax,” he said.
Carlson responded “that’s taxation without representation.”
The initiative, if enacted into law, would require people to “opt in,” to actually choose to be in the program. That is a stark contrast to the current law that only allows people a one-time opportunity to opt out.
The current opt-out provision only applies during the month of October. Citizens must get private long term care insurance prior to Nov. 1. After providing proof of insurance to the state, they then must get a state form to submit to their employer by the end of the year. Otherwise the employer must begin withholding the new payroll tax.
This tax will fund a long-term care insurance program known as the WA Cares Fund. The state’s mandatory LTC program provides a maximum benefit of $36,500, or $100 per day. “It’s not good for workers,” says Elizabeth Hovde of the Washington Policy Center.
The intent statement of the initiative says the following.
“The state of Washington’s government-operated long-term care insurance scheme has too many conditions and restrictions to propose good value to working people and families in the state. More troubling still, the scheme is actuarially unsound, which means the moneys the state deducts from workers’ paychecks are not enough to cover the scheme’s overhead, operating costs, and benefits obligations. In short, the scheme is a bad deal and working people in Washington should have the ability to opt out of it. This initiative provides all Washington workers that reasonable option.”
“I’m concerned that there are too many questions about the program’s viability, and that the people who are supposed to benefit the most from this program will end up being hurt financially in the long run,” said Senator Curtis King, (14th District). “I think the tax rate for the program eventually will need to rise, which will hurt lower-income workers.”
For example, if you make $50,000 per year, you will pay $290 per year until you retire or leave the state, King shared. “If you move out of Washington, your benefits are not portable, and your contributions will be forfeited to the state.”
People desiring to opt out must purchase a private long-term care plan before Nov. 1, 2021. King said: “Starting Oct. 1, 2021, through Dec. 31, 2022, you will need to fill out an application attesting to the Employment Security Department that you have purchased private long-term care insurance. ESD will provide you with an exemption letter, and this letter will need to be shown to your employer and any future employers to keep you from permanently paying the payroll tax.”
The program can’t pay for itself according to Condotta. “It’s 58 cents. It’ll turn it into $1.58 and then $2.50,” he said.
“Explain why it is that my Social Security is portable; wherever I go my Social Security comes with me,” Carlson said. “My 401k comes with me, my medical insurance comes with me. Why wouldn’t this brand new Long Term Care Program come with me if I paid the taxes into it?”
“Because that’s the way they wrote it,” Condotta responded. “It’s got a lot of problems like that.”
The initiative does two things according to Condotta. “It says you have to opt in to start with,” he said. “You have to tell them you want in this program. And then it says you can opt out at any time if you’re already in the program.”
Just another scam by inslee and the democrats.
This is the reason Inslee needs to be recalled or impeached.
Really? This is the issue that bothers you? Wow most conservatives don’t even know about this upcoming tax.
Sure they do Rhonda. All W-2 employees by law should know about this. This new ltc tax is Olympias way of paying out less Medicaid.
us from Washington in general are not educated about the long term care act, the bill was pushed through without a public vote. It is a luxury if your employer even educates their work force about the new tax starting in 2022 or the option which is to have a private health/life insurance policy that encompasses long term care act, but… you have only so long to do this one time thing and the time line is fading fast. this tax will increase and decrease with your income as well, you cannot take it if you leave Washington or resume it if you return. i can see this trickling to other states.
I’ve never heard about it. We hear about them when they start charging us for the taxes. If it doesn’t pass they just call it a fee. Believe me I owned a small business….
Unfortunately alot of employers have not shared the information. I heard about it nonths ago.
I am an employer and the first communiction I’ve received from the state was on 8/13. I learned about this tax via word of mouth. The state has been very quiet about launching this out.
Same for us. It was hush hush until late July
Washington State politicians are so sneaky and slimy. They would much rather stab you in the back than look you in the eyes and stab you in the heart.
My employer is based in California. My HR department didn’t know anything about it until I mentioned it. (My fault, I know…)
It’s already been passed into law and signed by Inslee to take effect 1/1/2022. I would encourage you to see if your local Representative voted for this and if so let them know what you think.
Local reps do not listen to us as individuals. Only as a collective. I’ve been trying with other issues for years. It’s almost a part time job having an individual’s voice heard!
You are absolutely right. I let Send Liz Lovelett know how disappointing her vote on this issue was. Her response was to remove me from her mailing list. Recall Sent Lovelett# and Recall Inslee#
Yes we do for Pete sake…thats a real slap
YES, We know about it and we don’t agree with it
Yes EVERYONE knows about it.
I didnt know about ot until now, and yes, I’m pissed. I dont need nor do I want any form of insurance. If the tax was not on a ballot, then it is not legal.
Gov Inslee did not create this bill, he signed it. And that is after it passed through the state house and senate.
Insley knew it was coming and could not get the pen to paper fast enough. Money mongering rat turd.
He knew it was coming and couldn’t get his pen to paper fast enough.
It’s great that this is out here but it’s too late. I’ve already signed up for a private plan that has higher coverage and will cover me regardless of where I live.
Jon — none the less, “if” you like that long term care plan you just purchased, good for you.
If you don’t, you can sign this petition, which will allow you and your neighbors to “opt out” and not be forced to pay the tax.
To me, it’s an issue of freedom and personal choice.
What was the insurance company? I can’t find one! Insurance Commissioner said that a lot of insurance companies have suspended LTC coverage in WA. AMAC says there are NONE remaining in WA State other than private member group coverage like Knights of Columbus.
There are a total of 7 companies selling in WA that have all been SLAMMED with requests for LTC because of this so they all suspended all apps until after the October 31st deadline. This is horrendous and needs to be stopped.
Here is a place to download the form to collect signatures. Make sure to put it on a legal-size paper or they will discount it and discard the signatures. (of course)
I-1436 is the bill AGAINST this LTC tax:
Store 2 — WashingtonPetitions.com
Correction….Print the Petition on Tabloid Size (11″ x 17″) paper, not the Legal Size (8.5″ x 14″).
It’s too late to sign up for any private plan. The deadlines have passed. 🙁
this petition can be submitted only by a person allowed to register to vote? only citizen can do , A non immigrant like me living in states for more than a decade and paying taxes are also allowed to do ?
Is there really no way to sign this petition online?….
Chris —
Sadly, under the “rules” so far, it must be printed on both sides, on an 11 x 17 page.
Kinkos will print one for you at minimal cost.
If you’re truly motivated, you can order a packet of 5 or up to 100 from the website.
https://www.washingtonpetitions.com/i1436-petition
According to the commercial I just heard on Kiro, you can go online to fill it out.
Where can I go to sign this initiative 1436 petition? I’ll gladly sign it.
Most of us don’t have time to stand somewhere for hours begging for people’s signatures. I’m glad I work at a company on sovereign land! The tribe is not participating in the tax😁
You can receive free petitions from this website but time is running out. I have a stack sitting on my counter, if anyone wants some?
https://www.yeson1436.com/
If this petition can only be signed in person, will someone share this with the major newsgroups, on FB, with financial advisor groups, and businesses so that more people know about this?!
And how are we going to get enough signatures to repeal this income like tax (because that’s basically what it is considering how little you get out of it), if we can’t sign online?
How can it be so easy for the state to sneak this in and yet so difficult to challenge it?
After researching online, it appears there are websites you can post petitions that you can sign online. Change.org is the most popular.
Is the former Rep. Cary Condotta’s group going to post this petition for online signatures? That would be most helpful and then this news article could include a link to it to sign.
You can sign the petitions online to have it sent to the various people in charge. But so far as I know anything less than a written signature on properly sized and printed paper doesn’t count for getting the initiative on the ballot.
It’s the people that vote these money grabbing politicians into office. Vote them out!
There is no way to opt out if you purchase a private long term care insurance later. This is basically an income tax on workers.
Income tax on workers. Exactly!
The state needs to put the LTC tax on a pause. The idea of it is to help people, but it has too many flaws. Anyone that pays into this tax should surely reap the benefit, regardless of which state they end up living in when they need care. The tax is unfair to employees who pay less than ten years into it. Those two issues must be reworked in order for this to be a true benefit for the citizens of Washington. I ask our leaders to just focus on the emergent needs caused by the pandemic at this time, and not to initiate a new tax that is hardly being discussed by the media, human resource offices, and the state.
I
There needs to be another open enrollment so people have more time to shop alternative plans and insurance companies can create new products. 80k applications in 30 days from only two insurance companies that I write with.
Agreed, an extension could be a starting point.
*IF* any companies are still offering LTC to Washingtonians! Most companies have closed their enrollment due to overwhelming demand, and some companies are shamelessly profiting from this situation, such as only offering LTC plans with premiums of $7500 per year. Not many people can afford that.
It needs to be deleted completely. The government needs to use the taxes citizens approved long ago for what they were intended! That’s the problem.
A maximum benefit of 36,000? That will cover about 6 months of long term care services. You’re going to have people think they have this benefit and then it’s going to run out just as a soon as they start to really need it.
3 months after 3 adls
Welcome to The Democrat Party
No, it won’t. It’s capped at $100/day. So you can’t collect it in less than a year.
That just means that you won’t actually be able to use it for anything.
Where can i sign the petition?!
Michael —
You can click on this link, and download a petition.
https://www.washingtonpetitions.com/i1436-petition
It must be printed on 11 x 17 paper — two sided printing so that both pages are on one piece of paper.
Since there are 20 spaces for registered voters to sign, get some of your friends and neighbors to sign as well. You do not need to collect 20 signatures (but the more the better!)
As a “Petition Gatherer”, you need to fill in the back page with your information and sign it.
Mail it to:
Yes on I-1436
P.O. Box 1323
Moses Lake, WA 98837
Mail petitions by Dec. 23, 2021.
LETS ALL DO OUR PART AND FILL ONE OF THESE OUT AND SEND IT IN. ANYONE WITH HALF A BRAIN WILL SIGN IT.
Thank you! Even Condotta’s page was not as clear on what to do and where to send it. 👍
There is no online place to do it that I have found
Here is a place to download the form to collect signatures. Make sure to put it on a legal-size paper or they will discount it and discard the signatures. (of course)
I-1436 is the bill AGAINST this LTC tax:
Store 2 — WashingtonPetitions.com
Find someone with nothing better to do than stand on a corner begging for signatures and sign the petition 😁
I’m retiring in less than 2 years, why should I be required to pay a dime? I’ll never be able to benefit from it.
That among many more reasons is why people are leaving Washington in groves
We need options, yes. Not a bag full of money for the state to spend without our permission. This is taxation without representation
Very well put!
I swear these pigs could milk a rock.
Has Condotta’s group EVER actually qualified an initiative for the ballot?
I’m glad that at least people are raising the problems to light and protesting this shameless taxation without representation. I figured it’d be lawsuits.
The WA W2 tax has created quite a storm. Insurance companies have been flooded with low premium applications. As a reaction the companies have either suspended sales in WA until Nov. or they have increased benefit requirements to make for an expensive policy and the companies also say even if someone applies they can no longer guarantee an application will be processed by the Nov 1 opt-out deadline.
A plan not that well thought through but let’s look at the issue.
Medicaid is a HUGE expense for states, paid for by our taxes already. The purpose of the tax is to shore up this expense that keeps growing.
In some countries the citizens pay high taxes and are taken care of cradle to grave but Americans don’t like taxes… but the long term care risk is the same… so one way or another we pay, most often all of our savings. The cost of care in WA is about $200/day for home & assisted living and $300+/day for nursing home. So how you gonna pay?
Why end the opt-opt on Nov 1?
We know in other cases the .58 will not stay .58 for long once the claims on the less than healthy start coming in. One way or another we pay.
I’m liberal, and LOL, this is precisely what I said — taxation without representation. I was about to start throwing tea into the harbor when I saw this. Thank goodness!!! This program is full of potential issues and frankly seems like a shameless revenue grab, because people WILL move out of state and the state just gets to keep their $$$, as well as the $$$ for people with 10 years or less until retirement. That’s a fair bit of $$$ the state just gets to keep without paying out a penny. Not OK. We absolutely should be able to opt out.
On top of the 0.58% is simply not going to bring in enough to cover what they’re saying the program will pay for. They’re lowballing the initial cost to convince people to ignore the opt-out window and then they’ll jack up the rate to whatever they please and use it however they like.
The current rules require them to notify participants if they decide to use the money for something other than providing benefits. But so what? You can’t do anything about it if they do, and that rule can be easily removed later once they’ve tweaked it to where there’s enough money to be worth turning into a slush fund.
That’s the most concerning part to me. This plan doesn’t pencil from the start with only .58%. they very clearly set it low now just to get it passed, fully intending to jack up the rate in a couple of years when, surprise!, the funds isn’t solvent.
Why the hell do some taxes need our vote and ones like these don’t?
I’ve purchased a commercial plan and will be opting out, but how do I sign this? I’m not an Inslee hater but this program is a scam.
sdgahy43a —
For the moment, there is no way to sign “online”. The government rules make that much more difficult.
You can print one petition up by sending it to Kinkos. It must be double-sided, and printed on an 11 x 17 paper.
If you are motivated, you can collect signatures from family and friends and neighbors, to help your fellow citizens.
You can also order a packet of 5 here.
https://www.washingtonpetitions.com/i1436-petition
I live in Oregon and work for a WA company, but have to pay the tax regardless of the fact there is zero benefit to me. My only option is to buy LTC elsewhere and opt out, but that is becoming increasingly difficult and expensive due to my age. My question is, can I sign the petition as a Oregon resident?
Jane — sadly the answer is “no”.
But you can help your fellow employees at the WA company by sharing this article with them and/or getting a petition printed up and collecting signatures. If we get enough signatures, it will require “all” employees to “opt in”, and therefore you will not be required to pay, “if” this initiative is passed.
Jane, you do not have to pay into this tax unless you are a WA resident. That is written in the law. Contact your HR because they are giving you the wrong information. This is a fact.
Do you have a citation from the actual bill on that? All I can manage to spot is where they define employee as:
A) anyone who is a Washington resident OR
B) anyone who provides services in Washington, with a few exceptions, none of which seem to say anything about non-residents.
So if it’s in there it’s well hidden…
This was passed in May of 2019. My employer sent us information on how we could opt out. We have until November 1st.
Julie —
The only way to “opt out” is by purchasing your own, private Long Term Care Insurance plan.
You shouldn’t be forced by government to “buy” anything.
Please join concerned citizens by getting copies of the I-1436 petition and collecting signatures! We need to give all WA citizens the opportunity to vote on this issue.
All we have to do is State that this was Trumps Idea and immediately our Attorney General Bob Ferguson will file a lawsuit against it for being and Income Tax that is against our State Constitution.
Amen!!!
Once you print and sign this petition, where do you need to send it?
Jane —
You can click on this link, and download a petition.
https://www.washingtonpetitions.com/i1436-petition
It must be printed on 11 x 17 paper — two sided printing so that both pages are on one piece of paper.
Since there are 20 spaces for registered voters to sign, get some of your friends and neighbors to sign as well. You do not need to collect 20 signatures (but the more the better!)
As a “Petition Gatherer”, you need to fill in the back page with your information and sign it.
Mail it to:
Yes on I-1436
P.O. Box 1323
Moses Lake, WA 98837
Mail petitions by Dec. 23, 2021.
Where do I sign up. Impeach enslee!!
Eric –
We have until the end of the year. Go to this website to download and print a copy of the Initiative petition. It must be printed on a single (double sided) 11 x 17″ page.
https://www.washingtonpetitions.com/i1436-petition
You can get family & friends to sign it. On the back you must sign it as the “collector” of voters signatures, and then return it to the P.O. box mentioned.
He should have been gone years ago. Lousy money mongering piece of rat manure.
Here is the thing. WA state Medicaid program WILL run into issues without this. It’s spending is projected to triple by 2030 and over 70% of the spending is because of long term care. Too many people don’t properly plan for this and then rely on the state and it’s too expensive, even for the state. WA is not doing this to “benefit it’s residents” they are doing this to take pressure of their Medicaid program which unfortunately is necessary. CAlifornia, Michigan and Illinois are all discussing a similar law, some with NO opt out provision at all.
this tax is going to be withheld similar to the family paid leave tax in WA which also is not portable, is a payroll tax and all W2 employees pay into it. I understand everyones frustration but I don’t think the state has much of a choice.
any state without income tax needs to find different ways.
This tax is ridiculous! We hear that Medicaid won’t be able to afford to cover this and that we are running out of Social Security (which I have paid into for 50 years thank you very much) But we don’t hear about running out of money for WELFARE – which, by the way, was meant to be a short term stop gap IN 1935!!!
Apparently we are being told that we need extra money from a poorly written tax that was NOT put before the people that we have no choice about AND that cannot support itself over the short or long term.
The State will collect at least one quarter of the tax from every individual that doesn’t already have LTC insurance because you must have your approval letter before you can actually opt out, and, guess who has control over dispensing those letters? Yep, that’s right, the State of Washington “oh, gee, sorry, we weren’t able to get your letter back to you until after the cut off so you have to pay the tax regardless for the first quarter. Make no mistake. The insurance companies are in on this full tilt too! This is absolutely to their advantage as we all need to purchase LTC insurance which is ONLY ISSUED AS A RIDER so if you don’t currently have a life insurance plan you have to purchase one and pay extra for a LTC rider.
It is a shameful scam by our State and hurts, not helps those of us close to retirement as we will not be eligible if we have 3 years or less left in active employment.
They snuck that Medicaid in there slicker than snot and now all the losers that come to Washington get it. You can’t run a state with the amount of freeloaders we have and continue to give them all the handouts they want and feel “entitled” to.
This tax was voted in. This is a lesson to look at the ballots you get every year and do research. This is not the states vault it’s our own ignorance.
Bradley, this was an advisory vote (non binding) for house bill 1087. The majority of Washington State voters (62.92%) voted to repeal the bill – which supported advising the legislature to repeal House Bill 1087. Only 37.08 % of Washington voters were in support of advising the legislator to maintain the house bill. https://ballotpedia.org/Washington_Advisory_Vote_20,_Nonbinding_Question_on_Tax_to_Fund_Long-Term_Healthcare_Services_(2019)
The majority of Washington State DID vote against this, but legislation disregarded the opinion of the majority and maintain the house bill anyway, despite the large percentage of opposition from Voters.
If people would stop voting for these money-mongering Democrats, we would not have these issues.
More problems with the Cares Act:
Absolutely not fair for those that are retiring in a few years and won’t be employed long enough to be vested in the 10 year minimum participation period. As seniors saving every penny they can in their final earning year’s, this means seniors save less. Total sham to bilk more tax dollars from wage earners which most will never see benefit from. Shame on Washington!
I just ordered 20 petitions, as I just heard about this tax yesterday. I work for a large company an am union represented and haven’t heard a single word about this until now. I’m going to give a petition to everyone around me and check with my legislators to see which of them voted for this. This is just one more example of how the legislators in this state run roughshod over their voters. If you voted for someone who voted for this, you should call their office and voice your concern, unless of course, you like this sort of taxation.
I have 6 years to retiremtne from WA State service. I am required to pay into this mess, but can’t utilize the funds for three years (2025). This means I have only 3 years to utilize the “isurance benefits” because it won’t follow me into retirement…I have to pay into the fund for ten years to do that. So, I’m paying for a “benefit I may never, ever need until well after my retirement??? That’s complete BS! And it IS taxation without representation! Next stop on the WA Taxation food chain…WA State Sales Tax. Just wait for it! Washington…Land of the FEE!!!
How can I help gather signatures? I, and a lot of people I know, are upset about this, so I’d like to help put an end to it if possible.
Once we get signatures on the petition what are the next steps? Do we need to send them in somewhere to be consolidated?
Is there a map where people can locate someone near them with a petition they can sign? I have some and would love to set them out for anyone at any time to come sign!
Where do I go to sign the petition ?
How to sign petition already out there?
Download your own or try to find it somewhere. They’re not making it very easy. Try this website .. yes I-1436 to find the petition.
I am moving to Idaho. This state I has lost its way. Jay inslee is just worthless
Can someone please tell me where do I mail the petition for signers that live in Olympia ?
A RIP off by Inslee and the state.
Were can we get a copy of the petition to pass around for people to sign
yes I-1436 or just search for it like I did!
We had 3 Advisory votes on the last ballot without voter approval
when are we going to rain these pollutions in
The Commonwealth of Virginia just did, Big Time. And New Jersey did as well but the demons are trying to steal it, hopefully the RNC grows some cajones and Audits the Vote. As for Wa. State, until the RNC starts a full Audit of Voting and not just recounts we are lost. The State should go back to pre mail in ballots to ensure election integrity.
This site is now censoring my posts. Welcome to Communism!
I will share with you that the settings on our comment platform have us approve more comments than it used to before them being seen publicly. The only comments we remove are ones that violate our comment policy (usually by use of profanity) and outright SPAM. As we are a small team, sometimes it takes time for us to get to the comments. We have not removed any of your comments. Feel free to reach out to me if you have any further issues: andi.s@clarkcountytoday.com. Thank you.
Where do we go to sign the petition?
Inslee, as most politicians, is in it for himself. Just like Social Security, the politicians will “BARROW” from the fund and never pay it back. As with SS, everyone will put money in, and not get much out. Inslee will raise the age you’re allowed to withdrawl your money untill most will die before making it to assisted living healthcare. Inslee’s nail in our coffin.
If you live in Washington, you need affordable health insurance. Sounds like a great idea to me.
Jay Inslee sucks.
Just another way not to track money squandered by the state of Washington.
It’s a flat out income tax just called by another name. They keep putting cute names on their new taxes. This governors unilateral powers need to be removed and we need to get back to the American way of voting for big changes.
I heard and I am not sure if it is try, there have been a lawsuit on this now? Correct?
How do I sign?
I rushed to get an LTC plan, filed for and received an exemption from Employment Security Dept. Then ran the numbers and found that the plan would not have paid anything for my two recent relatives who were receiving long term care. Thus, I cancelled the plan and ESD revoked my exemption.
What happens if you are already retired how would this effect someone that is already retired???