WA voters say no to state income tax Initiative 1098

National News

Early returns show voters rejected Initiative 1098 being rejected with about 65 percent of the vote to 35 percent in unofficial returns.

Initiative 1098 would institute a new state tax on the top 1 percent of incomes to pay for education and health programs while trimming state property and business taxes. The campaign follows January’s overwhelming decision by Oregon voters to increase taxes for corporations and wealthier households.

"I'm particularly gratified the way Initiative 1098 is going down to defeat. I don't think we're going to see that kind of initiative back anytime soon," said former Senator Slade Gorton.

Initiative 1098 campaign was referred to as the "battle of the billionaires."

Microsoft co-founder Bill Gates and his father are among the wealthy Washingtonians who joined labor unions and other traditional Democratic allies to support the tax-the-rich ballot measure. Opposing 1098 were Amazon.com founder Jeff Bezos, Microsoft co-founder Paul Allen, Microsoft CEO Steve Ballmer, Boeing, Russell Investments, Paccar Inc., software billionaire Charles Simonyi and members of the Nordstrom family.

And, big money was thrown into the fight. Supporters of the initiative spent more than $6.1 million, while the campaign against it spent more than $5 million of the $6.4 million raised.

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.

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