Clark County residents are feeling the sting of Washington’s Paid Family and Medical Leave (PFML) payroll tax, a levy that deducts a portion of every paycheck to fund paid leave for other workers. For single parents and other low‑wage earners, the tax reduces take‑home pay just as they are trying to stretch limited resources.
How the tax works
Employers with 50 or more employees must contribute to the state‑run PFML fund, and the cost is passed on to workers through a payroll deduction. The rate, which was 0.40% in 2019, is set to rise to 1.2% beginning in 2027. That increase means a single‑parent household could see a noticeable cut in net wages just as they hope for a raise or savings.
Who is using the benefits?
Data from fiscal year 2026 show that workers earning $61 an hour or more accounted for 19% of PFML claims, while those in the lowest wage group made up only 8% of claims. In other words, higher‑earning employees are more likely to take advantage of the paid leave, while lower‑earning workers fund the program without receiving comparable benefits.
Local impact
For many Clark County families, the deduction feels like a “reverse Robin Hood” – money taken from those who need it most to subsidize workers who are already financially secure. One single parent described the deduction as a surprise that forced a planned raise to be postponed, jeopardizing their ability to build an emergency fund.
Critics and lawmakers
State legislators who championed the PFML law argue that the program provides essential paid time off for families. However, critics point out that the payroll tax is regressive, hitting low‑income earners harder than the affluent. Some lawmakers are even proposing to increase the tax rate further, despite evidence that the current structure already places an undue burden on the state’s most vulnerable workers.
Calls for reform
Policy analysts at the Washington Policy Center, including director Elizabeth New (Hovde), suggest that the state should eliminate the payroll tax in 2027 and explore alternative funding mechanisms that do not penalize low‑wage workers. They argue that a more targeted approach would preserve the benefits for those who truly need paid leave while protecting the earnings of families already struggling to make ends meet.
Broader tax context
The PFML tax is part of a larger trend of new payroll taxes in Washington, such as the WA Cares tax, which also draws contributions from most workers regardless of need. Meanwhile, the state’s general sales tax remains unchanged, and a recently enacted income tax—declared unconstitutional by opponents—adds another layer of taxation without offsetting the payroll taxes.
As Washington debates the future of these taxes, low‑income families in Clark County and across the state watch closely, fearing that additional tax hikes could further erode their purchasing power and job prospects.
Original reporting: Clark County Today (Vancouver WA) — read the source article.
