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flag Washington state Democrats dropped a $600/month tax on large employers to fund Medicaid due to implementation hurdles.

flag Washington state Democrats have abandoned a proposed $600-per-month tax on large employers to help cover rising Medicaid costs, citing time constraints and implementation challenges. flag The bill, which would have targeted companies with over 100 employees and aimed to generate up to $1.6 billion by 2029, was intended to offset federal Medicaid cuts, including new work requirements and loss of coverage for 30,000 noncitizens. flag Critics warned it could deter hiring people with disabilities and unfairly burden already taxed businesses. flag Though the tax was not expected to take effect until 2027, lawmakers acknowledged the need for better data and enforcement systems. flag The issue remains under discussion, but no immediate action is planned.

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