Cubin
Wins Final House Approval
for
Sales Tax Deduction
Wyoming
Taxpayers Projected to save more than $27 Million a Year
 Washington
-The U.S. House last night gave final approval to legislation originally
introduced by U.S. Representative Barbara Cubin (R-WY) that will
allow residents of states with no state income tax, like Wyoming,
to deduct their state sales taxes when filing their federal income
tax returns. Rep. Cubin first introduced the legislation in 2001.
The passage of the proposal, approved as part of
the final House/Senate conference report of the American Jobs Creation
Act (H.R. 4520), marks the culmination of years of work on the issue
for Rep. Cubin. The final House floor vote was 280-141.
"Getting this bill passed is gratifying not
just because of all the work it took to get here, but also because
the people of Wyoming deserve to be trated fairly at tax time,"
said Cubin. "Our citizens shouldn't be penalized just because
they're lucky enough to live in Wyoming."
Rep. Cubin's sales tax deduction was originally included in the
House-passed version of the American Jobs Creation Act and not in
the Senate bill. Rep. Cubin was able to work with legislators on
both sides of the aisle and in both chambers to get the deduction
included in the final bill.
Under current law, taxpayers who live in states that collect income
taxes are eligible for a federal tax deduction, but taxpayers in
states with no state income tax, such as Wyoming, are not eligible
for a similar deduction.
"It's a matter of simple fairness," said Cubin. "The
people of Wyoming are being asked to shoulder an unfair share of
the federal tax burden. This isn't about getting special treatment
for the people of Wyoming, it's about getting equal treatment."
Under Cubin's proposal, taxpayers in Wyoming and the other states
with no state income taxes will be able to deduct their sales taxes
by using a simple table published by the IRS. The other six states
with no state income taxes are Florida, Texas, Tennessee, Nevada,
South Dakota and Washington. No receipts would need to be saved.
Residents, however, would still be able to save receipts for large
purchases -- like a tractor or truck -- in a given year that would
provide a larger deduction than what is listed on the IRS tax table.
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