House GOP OKs sales tax deduction for state

OLYMPIA – U.S. House Republican leaders on Monday agreed to a plan that would allow Washington state taxpayers to deduct as much as $1,000 per year in state sales taxes from their federal tax liability, Rep. George Nethercutt said.

Nethercutt, R-Wash., a member of the House Appropriations Committee, said Majority Leader Tom Delay, R-Texas, and Ways and Means Chairman Bill Thomas, R-Calif., have agreed to authorize the deductions as part of tax legislation now moving through Congress.

Nethercutt is challenging Democratic incumbent Sen. Patty Murray in this fall’s election.

Although details were still sketchy Monday night, Nethercutt said the $4 billion plan would mean as much as $1,000 per year for the next three years for Washington taxpayers. Eight other states, mostly those with no state income tax, also would qualify, he said.

“This is a fairness issue,” since residents of states with an income tax can deduct that tax from their federal liability, Nethercutt said in an interview. “We had this years ago and then it was taken away in the 1980s.

“The important thing is that our economy in Washington state has struggled and this tax relief puts more money in the pockets of the people of the state of Washington.

“This is a fair compromise.”

The entire state congressional delegation has agitated for deductibility ever since then-Sen. Bob Packwood, R-Ore., dealt it away as part of the tax overhaul of 1986. Rep. Brian Baird, D-Wash., for instance, has made it a signature issue.

Nethercutt didn’t mention Baird, but rather credited Washington Republican Reps. Jennifer Dunn, an influential senior member of the tax-writing panel, Doc Hastings and himself.

“We have worked very hard behind the scenes on this,” he said.

The Senate and the White House are likely to concur, he added.

Baird welcomed the development, but described the Republicans as coming late to the party.

“For four years, they’ve been giving tax cuts to millionaires and major corporations and never have been able to put the sales tax deduction on the table,” he said in an interview.

“I guess my attitude is, better late than never. I’m glad. We kind of had to bring them along kicking and screaming.”

The Vancouver Democrat said he secured deductibility in the Democrats’ House version of the tax bill two months ago. The Democratic plan was for a permanent change in the tax code worth about $500 million a year for Washington state.

The average taxpayer under the Democrats’ plan would save between $300 and $500 a year, he said.

It’s a hot-button issue for taxpayers who itemize their deductions, especially for those who live along the Oregon-Washington border and see friends who live a few miles away able to deduct their state income taxes, he said.

Murray’s campaign spokeswoman, Alex Glass, declined comment on Nethercutt’s announcement, but said “It is an issue the senator has worked for for a long time and definitely supports.”

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Customers enter and exit the Costco on Dec. 2, 2022, in Lake Stevens. (Olivia Vanni / The Herald)
Costco stores could be impacted by looming truck driver strike threat

Truck drivers who deliver groceries and produce to Costco warehouses… Continue reading

Two Washington State ferries pass along the route between Mukilteo and Clinton as scuba divers swim near the shore Sunday, Oct. 22, 2023, in Mukilteo, Washington. (Ryan Berry / The Herald)
Ferry system increases ridership by a half million in 2024

Edmonds-Kingston route remains second-busiest route in the system.

Candidates announce campaigns for Everett city council seat

Ryan Crowther, founder of the Everett Music Initiative, will challenge incumbent Paula Rhyne for the District 2 seat.

Lynnwood City Council Vice President Julieta Crosby speaks during a Lynnwood City Council meeting on Wednesday, Nov. 20, 2024. (Olivia Vanni / The Herald)
Lynnwood picks top eight candidates to replace former council VP

The City Council will make its final decision Feb. 20 after interview process.

The peaks of Mount Pilchuck, left, and Liberty Mountain, right, are covered in snow on Wednesday, Feb. 12, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Western Washington’s current winter drought may not last through the season

Even with last week’s snow flurries, there’s no denying this… Continue reading

Robin Cain with 50 of her marathon medals hanging on a display board she made with her father on Thursday, Jan. 2, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Running a marathon is hard. She ran one in every state.

Robin Cain, of Lake Stevens, is one of only a few thousand people to ever achieve the feat.

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

Devani Padron, left, Daisy Ramos perform during dance class at Mari's Place Monday afternoon in Everett on July 13, 2016. (Kevin Clark / The Herald)
Mari’s Place helps children build confidence and design a better future

The Everett-based nonprofit offers free and low-cost classes in art, music, theater and dance for children ages 5 to 14.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

A view of a homes in Edmonds, Washington on Friday, Sept. 8, 2023. (Olivia Vanni / The Herald)
Snohomish County to mail property tax statements this month

First half payments are due on April 30.

Ticket and ORCA card kiosks at the Lynnwood Light Rail station on Thursday, April 4, 2024 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Beginning March 1, Community Transit to reduce some fares

Riders eligible for reduced fares will pay $1 for a single ORCA card tap and $36 for a monthly pass.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.