People who live in states with income taxes can deduct their state income tax from their federal income tax through a permanent deduction. But people in states that don’t have state income tax — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming — won’t be able to deduct their high state sales taxes, as they did from 2004-2011, because the deduction expired at the end of last year.
Hutchison has sponsored S. 80 to make the sales tax deduction permanent. In the letter, the senators wrote that not continuing the tax deduction for eight states would unfairly affect 22 percent of the U.S. population.
“Residents of states that levy income taxes have long been able to deduct these state income taxes through a permanent deduction,” the letter stated. “However, taxpayers in our states, which use sales taxes in lieu of income taxes to finance government services, have been treated inequitably ....
“We face many tough decisions in the next few weeks. The extension of the state and local sales tax deduction should not be one of them. We urge you to ensure that our constituents receive fair treatment under the tax code and pass an extension of the state and local sales tax deduction as soon as possible.”
Sens. Maria CantwellMaria CantwellThis week: Congress on track to miss Puerto Rico deadline Week ahead: Senate looks to wrap up energy, water spending bill Senate, House face time crunch on energy bill MORE (D-Wash.), John CornynJohn CornynJudiciary Dems seek hearing on voting rights First US Zika death reported in Puerto Rico Senate confirms Obama's long-stalled ambassador to Mexico MORE (R-Texas), Mike EnziMike EnziGOP blocks slate of Obama judicial nominees Overnight Finance: New rules proposed to curb Wall Street pay GOP senator tries to tie 'No budget, no pay' to funding bill MORE (R-Wyo.), Bill NelsonBill NelsonFCC box plan raises alarms among House Judiciary leaders Three more Republican senators to meet with Supreme Court nominee This week: Congress on track to miss Puerto Rico deadline MORE (D-Fla.), John ThuneJohn ThuneAir traffic control plan faces tough fight ahead GOP blasts Obama for slow economic growth Overnight Tech: Business data deals on FCC agenda MORE (R-S.D.), Lamar AlexanderLamar AlexanderDemocrats block energy spending bill over Iran amendment Overnight Finance: Puerto Rico pressure builds; Big tariff vote Wednesday Senate votes to increase wind energy funding MORE (R-Tenn.), John BarrassoJohn BarrassoObamaCare premiums expected to rise sharply amid insurer losses Palestine is latest GOP offensive in climate change wars Senate GOP sticks with leadership team MORE (R-Wyo.), Dean HellerDean HellerCarter pledges probe of sex assault testimony Democrats block energy spending bill over Iran amendment Senate votes to increase wind energy funding MORE (R-Nev.) and Tim JohnsonTim JohnsonOn Wall Street, Dem shake-up puts party at crossroads Regulators fret over FOIA reform bill Senators push back against using guarantee fees to offset spending MORE (D-S.D.) also signed the letter.