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Congress reinstates sales tax deduction
after 18 years |
President Bush recently signed a measure allowing Washington state taxpayers to deduct state and local sales taxes from their 2004 federal income tax return.
“For the last 18 years Washington state residents have been forced to shoulder an unfair share of the tax burden,” said Senator Maria Cantwell. “This relief will grant tax fairness to Washington state families, and is a shot in the arm for our local economy.”
Currently, in most other states, taxpayers are allowed to deduct state income tax from their income that is taxed by the federal government. However, residents of states that have no state income tax but have a higher sales tax have not been allowed a sales tax deduction since changes to the tax code were made in 1986. The change affects seven states, including Washington. |
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