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Mon January 7, 2008
Wyoming Worries About Sales Tax Break
Laramie, Wy – Wyoming residents are able to deduct the money they spend on state sales taxes, but only for another year. Wyoming lawmakers are trying to make the deduction permanent, but their efforts keep getting thwarted.
Wyoming is one of seven states that raise revenue through a sales tax instead of an income tax. Every year lawmakers from those states fight so residents can deduct their state sales taxes from their federal income taxes. Republican Senators blocked an extension of the deduction in December. They say proposals to pay for the deduction amount to a tax increase. Wyoming Republican Senator Mike Enzi says there is plenty of extra money to pay for it. The biggest problem with making it permanent is that it shows a loss in revenue to the federal government. Even though all the tax relief we have done in the past still results in more revenue in the United States than we have ever had in any given year.
Wyoming residents can still deduct their state sales taxes on their two thousand and seven returns. But unless Congress acts, residents won't be able to deduct that money in two thousand and eight.