A new tax for an expanded paid family leave program?

During the first week of the legislative session we noted the bill to repeal our state's unfunded, unimplemented paid family leave law, calling repeal the only responsible move for this troubled program in the midst of a recession.  At the same time we predicted the program's remaining legislative advocates would likely push a new payroll tax to try and revive the idea in advance of its improbable October 1, 2009 start date.

The Olympian's Adam Wilson has the story this morning:   

The paid-family-leave program that the governor suspended to save money could reappear, only bigger. It would be paid for with a 2-cents-an-hour payroll tax on most employees. Any such tax would have to be approved by voters, but the chairwoman of the state Senate Health Care Committee is confident that the pubic would approve it. . . .

[Senator Karen] Keiser said a new bill that will be introduced soon will not only revive the program, but expand benefits to those caring for sick parents or other family members. She also said President Barack Obama has been supportive of similar programs, and some federal money might be available to finish Washington's computer system.

We had this to say:

"There wasn't the political will to pay for it with a payroll tax even in good economic times, in 2007," said Kris Tefft of the Association of Washington Businesses. "Now is not the time to consider a payroll tax, whether its on employers or employees," he said. "The nature of the program is its ultimate costs won't be borne by the worker even if they're taxed for the insurance premium." Businesses still would be saddled with the administrative paperwork, even as they and their workers grapple with a recession, Tefft said.

Cross-posted at Olympia Business Watch.