Close the Payroll Tax Loophole – Balance Our Tax Code

This would remove a loophole that allows wealthy corporations to avoid paying payroll taxes on the highest salaries, which fund social programs.

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Hello,

I am a constituent writing to ask for your support to make corporations pay payroll taxes on people with the highest salaries.

In Washington, we all see the value in our social safety net. I want to live in a state where I can take time off to welcome a new child, make rent after a layoff, or cover my bills if I’m injured on the job.

The programs we all depend on – like Paid Family Medical Leave, unemployment insurance, and workers’ compensation – are all made possible by payroll taxes.

But we have a tax loophole that allows wealthy corporations to avoid paying payroll taxes on their employees with the largest salaries (above $168,600). This cap on payroll taxes only benefits employers with the deepest pockets.

Because past lawmakers created these types of exemptions for the wealthiest, Washington now has the second most upside-down tax system in the country. Washingtonians working for minimum wage pay about three times as much of their incomes as their billionaire neighbors. Allowing wealthy corporations to hoard wealth tax-free has also led to our current struggles to fund our schools, health care, and workers’ services.

If you close the payroll tax loophole by removing the cap on high salaries, we could raise about $4 billion per year for Washington’s social safety programs.

Can I count on your vote to make the wealthiest corporations pay what they owe to our working communities?