U.S. Sen. Maria Cantwell says the “fiscal-cliff” tax bill that passed by a vote of 89-8 early this morning includes the sales-tax deduction for taxpayers in Washington and a half-dozen other states. Cantwell had said the deduction, which covers 2012 and 2013 returns, would be a top priority for her after the November election.
The tax break has previously been estimated to have a value of up to $500 million yearly to state taxpayers, who are unable to deduct state income taxes because Washington does not tax income. Cantwell said the deal should save 850,000 taxpayers who itemize their income tax returns about $500 on average.
That said, most Washington residents face have higher outlays as a result of the overall cliff package, simply because the temporary 2 percent cut in payroll taxes for Social Security is not included in the deal. The Washington Post has details of the brokered agreement here, and the whole shebang goes to the U.S. House for a possible vote in the next few days.
Without passage, a combination of $600 billion in tax increases and spending cuts take effect. This link has background.
Cantwell, a Seattle-area Democrat who won her third term in November put out a news release early today that says several other tax breaks for veterans, students, and clean energy are included in the agreement:
Stay tuned for the House votes.