Press Releases

Washington Democrats Ask for State and Local Sales Tax Deduction Extension

Today, U.S. Reps. Jim McDermott, D-Wash., Rick Larsen, D-Wash., Suzan DelBene, D-Wash., Denny Heck, D-Wash., and Derek Kilmer, D-Wash., sent a letter to Ways and Means Chair David Camp and Ranking Member Sander Levin asking for an extension of the state and local sales tax deduction that is set to expire January 1.

“Extending the sales tax deduction is critical to ensuring equal tax treatment for residents of states that do not assess an income tax,” wrote the members. “If the deduction is not extended, millions of taxpayers living in states without an income tax will shoulder a larger share of the federal tax burden since they cannot claim the dedication.”

Without an income tax, Washington state residents pay a higher sales tax, which can disproportionately hurt families and individuals with lower incomes. Nearly one third of Washington taxpayers use the deduction, the highest rate in the nation. According to the Pew Charitable Trusts, allowing the sales tax deduction to expire could cost the average Washington state taxpayer who itemizes $600. By extending the sales tax deduction, Washingtonians, and others in states’ without income taxes, will pay a fairer share of taxes.

Read the full letter here.