McMorris Supports Legislation Extending Washington State Sales Tax Deduction

(Washington, D.C.)  Congresswoman Cathy McMorris (WA-05) voted early this morning in favor of H.R. 5970 – Estate Tax and Extension of Tax Relief Act of 2006 that includes the state sales tax deduction for Washington state. The provision creates parity among states by allowing all taxpayers the option to deduct their state sale taxes in lieu of their state and local income taxes. The legislation also includes a research and development tax credit.

“Eastern Washington families and businesses should be able to deduct every penny of state and local sales tax they pay throughout the year from their federal tax bill, especially when people in most states are deducting their state income taxes,” said McMorris. “Extending the Research and Development tax credit is a crucial in order for businesses to remain competitive and to grow the economy.”

The Americans Job Creation Act of 2004 restored the deduction for residents of Washington state and eight other states. In the 2004, the deduction was utilized by over 925,000 Washington taxpayers, who were able to keep more than $500 million of their hard earned dollars.

McMorris is a co-sponsor of H.R. 519 that would make the sales tax deduction permanent. She has sent a letters to Committee Chairmen, Pension Conferees, and leadership about the importance of the state sales tax deduction and the research and development tax credit.