Washington's sales tax should be tax deductible

CONGRESSMAN Brian Baird starts the New Year off right by attempting to make the sales-tax deduction permanent. As residents of one of seven states that sweat this option out every year, the time is right to end the tortured debate.

The argument for sales-tax deductibility is easy. Seven states don't rely on a state income tax. In all other states, the federal government allows residents to deduct state income tax from federal returns. Apply the same standard to the sales tax.

Only on a year-to-year basis have residents of sales-tax states been able to deduct sales taxes from federal returns. The deduction is in place, but only for the upcoming two years of returns.

Too often, the deductibility question gets tangled up in political sparring over the federal budget. It is unfair to allow citizens in one state to deduct major state taxes from returns while limiting citizens in other states.

Baird has worked this issue for years, but it becomes a permanent job. Congress is in the mood — should be in the mood — to help citizens spend a little.

The sales-tax deduction saves Washingtonians hundreds of millions of dollars a year. It is exactly the right time to make this deduction permanent.

"We need to stop fixing this problem a year or two at a time, and instead fix it for good," said Baird, a Vancouver Democrat. "This is about what's fair, not just for Washingtonians, but for residents of other states who pay state sales tax, but no state income tax."

The deduction puts money back into people's pockets — cash people can put back into the economy.

Sen. Maria Cantwell, who has also worked hard on sales-tax deductibility, will introduce companion legislation in the Senate. Congress should get on board this glaringly sensible tax reform.