Thursday, Representatives Doc Hastings (R-WA) and Jim McDermott (D-WA) led a bipartisan letter signed by 57 Members of Congress seeking tax treatment fairness for the residents of states that do not collect income taxes.
“The sales tax deduction expired on January 1, 2014. This means a disproportionate number of Americans will shoulder a larger share of the federal tax burden if the deduction is not extended,”wrote the Members in the letter. “The sales tax deduction plays a vital role in our states’ economies, spurring growth and creating jobs.”
Unless the sales tax deduction is extended, a larger share of the federal tax burden will be placed on residents of states that do not assess income taxes. In the letter, the bipartisan group of Members urged the House Committee on Ways and Means to extend the sales tax deduction, granting equal opportunity and much-needed tax relief to millions of hardworking, taxpaying Americans.
More than 20 percent of our nation’s population resides in the states of Washington, Florida, Alaska, Nevada, South Dakota, Tennessee, Texas, and Wyoming, which do not collect a state income tax. Instead, these states levy a substantial sales tax to finance state and local services. Since residents of these states cannot claim a deduction for state income taxes, extending the sales tax deduction would ensure that millions of Americans are not penalized for their state’s preferred tax structure.
Read a copy of the letter signed by 57 bipartisan Members of Congress here.