Since the state’s Paid Family and Medical Leave program began in 2019, its tax rate has tripled to 1.2% of workers’ gross wages (beginning in 2027). We have already reached the tax-rate cap for the program.
Washington state workers can’t afford any additional payroll tax increases for PFML, but lawmakers have been discussing getting rid of the tax-rate cap and raising the payroll tax even higher.
Instead, lawmakers should repeal this unsustainable program. At the least, the Legislature should consider making benefit-side changes to PFML, rather than taking more money from workers — including low-income workers.
Research shows that paid leave isn’t primarily helping people in need. Rather, it’s being used by those with middle and upper incomes. In fact, people earning $61 per hour or more use the PFML program more than twice as much as people in the lowest-earning quintile. A policy that takes money from low-income workers and gives it to those with ample resources is not defensible.
We all have needs, whether we qualify for PFML’s specific needs or not. It’s time to leave paid leave behind.