Sales tax deduction, in fairness, should stay

Nothing makes paying your federal income taxes a painless exercise, but finding legal ways to minimize them sure helps.

And it’s reasonable to expect that you won’t have to pay a dime beyond your fair share.

As the April 15 filing deadline approaches, Washington taxpayers who have paid attention are feeling a little less of a sting. Those who itemize their deductions can include the state and local sales taxes they paid last year, giving them an average windfall of around $500.

This change, adopted by Congress late last year, was an overdue concession to fairness. Sales tax deductibility was eliminated 1986, inflicting fiscal discrimination upon taxpayers of the seven states – including Washington – that have sales taxes but no state income tax. The latter has remained fully deductible.

But Congress’ action last year only applied to the 2004 and 2005 tax years. Budget resolutions passed by the House and Senate this year extend the deduction through 2010 – less than the permanency Washingtonians deserve, but a step in the right direction. A joint committee now must reconcile the two resolutions, and it mustn’t monkey with sales-tax deductibility.

Washington Sen. Maria Cantwell and Rep. Brian Baird, who helped push the provision through last year, are watching closely – just in case. Cantwell last week wrote to the leaders of the conference committee urging them not to strip the deduction from the final budget.

There is good reason to believe the extension will survive: The majority leaders of both the House and Senate are from states that benefit. Still, that wasn’t enough to make the deduction permanent, so the conference committee’s deliberations shouldn’t be overlooked.

Sales tax deductibility has its detractors. A report last year from the conservative Heritage Foundation argued that it serves as an incentive for state and local governments to raise sales tax rates. We haven’t seen pressure for that here, and given the political momentum against increases in sales, business and property taxes in Washington, that’s not likely to change.

If an effort to eliminate sales tax deductibility is mounted, fairness calls for state income taxes to be part of that discussion. What’s good for one state should be good for all. Either every taxpayer in American should be able to deduct their primary state tax, or none should.

For now, enjoy your deduction and the knowledge you’re being treated fairly for the first time in nearly 20 years.

Talk to us

More in Opinion

Sen. June Robinson, D-Everett, left, and Sen. Mark Mullet, D-Issaquah, right, embrace after a special session to figure out how much to punish drug possession on Tuesday, May 16, 2023, in Olympia, Wash. Without action, Washington's drug possession law will expire July 1, leaving no penalty in state law and leaving cities free to adopt a hodgepodge of local ordinances.  (Karen Ducey/The Seattle Times via AP)
Editorial: Robinson smart choice to head Senate budget panel

A 10-year legislative veteran, the Everett senator displays a mastery of legislation and negotiation.

toon
Editorial cartoons for Tuesday, Sept. 26

A sketchy look at the news of the day.… Continue reading

Randall Tharp’s month recovery coins after battling a fentanyl addiction.  (Kevin Clark / The Herald)
Fentanyl crisis should force rethinking of approach

A continuum of care, that includes treatment in jails, is imperative, says a journalist and author.

Flowers bloom on the end of a dead tree on Spencer Island on Monday, Aug. 28, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Editorial: Restore salmon habitat but provide view of its work

Comments are sought on a plan to restore fish habitat to the island east of Everett with popular trails.

School buses need seat belts and limits on capacity

My name is Grace Davis and I am a seventh-grade middle schooler… Continue reading

Congress must reauthorize funding act for Alzheimer’s research

With more than 6 million Americans living with Alzheimer’s disease, including 120,000… Continue reading

Comment: Democrats have nothing to gain by backing Menendez

Unlike the loss of Al Franken, encouraging the New Jersey senator to go doesn’t cost the Democrats much.

Comment: Amid union victories, labor still faces big challenges

Federal regulations, such as the Taft-Hartley Act, have long stymied labor’s efforts to gain members.

Comment: Desantis’ $2 gas pledge should terrify Texas

He can’t get there unless oil is trading below $55 a barrel; nobdy wants to revisit those days.

Most Read